US housing starts

Housing starts rebounded in July with the added boost of positive revisions to a dire reading for June. In addition the outlook seems decent given the accompanying pick-up in permit applications. The rebound lifted overall starts to a 1.093 million level, which easily surpassed the estimated pace of activity of 965k.

The report also showed a strong rebound in construction of multi-unit dwellings, which jumped to the strongest level in over eight years. Multi-unit construction was padded by a surge in development in the nation’s largest Southern region where building work reverted back towards levels typically seen earlier this year. Construction of single family homes also rebounded in the region but the overall impact was to lift nationwide construction of multi-family units to 437,000 units, a level not seen since January 2006.

Overall, single family units shrugged off a dip in activity in the Midwest to put in a monthly gain of 8.3%, while the boost from the South saw building starts on apartment dwellings increase by 28.9%. Permit applications were also 50k above estimates at 1.052mm, rebounding from a June reading of 973,000, which was also revised higher.

Chart shows multi-family units reach highest level since January 2006.