US Housing Starts Rose 3.9% in August Surging in The Northeast 167.2%

US housing starts rose in August 3.9% m/m vs -7% prior, or 1615K v July’s revised 1554K. Starts surged the most in the Northeast (167.2% to the highest level since January). Building permits rose 6.0% m/m ighest level since April.

US March housing starts soared in March 19.4% m/m vs +13.5% expected, or 1739K v 1613K expected and February’s revised 1457K. The highest reading since June of 2006, after harsh winter weather affected activity in February. Building permits were 1766K v 1750K expected

 US Housing starts Aug 2021

The move suggests disruption and demographic influences.

US Housing Starts for August 2021:

  • Starts for August 1.615M versus 1.55M estimate, Prior housing starts were 1.534M (revised to 1.554M). Housing completions 1.33M Starts month-to-month change +3.9% vs -7.0% last month Starts of buildings with five units or more jumped 21.6% to 530,000
  • Single-family starts dropped 2.8% to 1,076,000.
  • Starts surged the most in the Northeast (167.2% to the highest level since January),
  • Midwest (up 11.4%)
  • South (up 1.4%)
  • But fell in the West (down 21.1%).

United States Housing Starts

The housing market has been supported by low interest rates and increasing demand from people moving away from big cities due to the coronavirus crisis, but the momentum could slow as rising lumber prices amid supply constraints could limit production and ease a shortage of homes.

US Building Permits for August 2021:

  • Building permits for August 1.728 million versus 1.60M estimate, the highest level since April
  • Building permits month-to-month +6.0% versus +2.3% last month
  • Volatile multi-segment jumped 15.8 percent to a rate of 674 thousand
  • Single-family authorizations were up 0.6 percent to a rate of 1.054 million.
  • Permits were up across all regions:
  • South (6.7 percent to 914 thousand);
  • West (3.5 percent to 445 thousand);
  • Midwest (0.9 percent to 215 thousand);
  • Northeast (18.5 percent to 154 thousand).
  • Single-family building permits came in at 1.054M (+0.6%) versus 1.048M last month.
  • Multi-unit permits came in at 0.632M. Last month 0.587M

United States Building Permits

The big question is after the lockdown eases and the economy reopens how much further can housing starts go with the massive disruption and divergence with unemployment and wealth creation and erosion demographics.

Source: US Census 

From The TradersCommunity News Desk

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