May 2014 US housing starts and building permits fall more than expected, permits for multi-family housing tumble 19.5%, March starts revised down-Reuters

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"Permits for multi-family housing tumbled 19.5 percent."

6/17/14, "U.S. housing starts, permits fall more than expected in May," Reuters, via Business Insider

"U.S. housing starts and building permits fell more than expected in May, suggesting the housing recovery will likely remain slow for a while.

Groundbreaking for homes fell 6.5 percent to a seasonally adjusted annual pace of 1 million units, the Commerce Department said on Tuesday.

March's starts were revised down to show a 12.7 percent increase instead of the previously reported 13.2 percent rise. Economists polled by Reuters had forecast starts slipping to a 1.03 million-unit rate last month.

Housing is struggling to regain momentum after a run-up in mortgage rates and hefty increases in prices stifled demand. A shortage of properties has also weighed on the sector.

Groundbreaking for single-family homes, the largest part of the market, fell 5.9 percent in May to a 625,000-unit pace, while starts for the volatile multi-family homes segment decreased 7.6 percent to a 376,000-unit rate.

Federal Reserve Chair Janet Yellen said last month there was a risk a protracted housing slowdown could undermine the economy.

Permits to build homes declined 6.4 percent to a 991,000-unit pace in May, pulling back from the 1.06 million units touched in April. Economists had expected permits to dip to a 1.05-million unit pace.

Permits for single-family homes rose 3.7 percent to a 619,000 unit-pace. They continue to lag groundbreaking, suggesting single-family starts could fall in the months ahead.

A survey on Monday showed confidence among single-family home builders increased in June, but fell short of reaching the threshold considered favorable for building conditions.

Permits for multi-family housing tumbled 19.5 percent to a 372,000-unit pace."


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