Some good news on the housing front made national headlines today: the Commerce Department reported that housing starts in June jumped 14.6 percent over May to an annual rate of 629,000 units. (Housing starts represent the number of housing units that began construction in a given month.) The number marks a six-month high and was above what analysts were predicting.
Another figure released today, building permit authorizations, rose to reach an annual rate of 624,000 in June. Together, housing starts and building permits are looked to as leading indicators of the housing market’s direction.
Now for some words of caution.
While today’s numbers are a welcome reprieve from the gloomy national housing news of recent months, the surge in housing starts is being attributed to a 30 percent increase in multifamily homes (buildings with more than 5 units), which actually represent a relatively small piece of the overall housing market. (Although, single-family home starts were up 9 percent as well.) Analysts pointed to the multi-family data piece when trying to provide some perspective on what it means for the long-term.
“Most of the gains were in multi-family housing which always gives you pause as that is very volatile,” Bloomberg Economic Editor Michael McKee said on a video about the news. “The numbers are better than expected, but it is summertime, so we would hope to see a little bit of an increase in housing construction.”
The full report from the Commerce Department is available here.
This article originally published at http://dc.urbanturf.com/articles/blog/good_news_housing_starts_up_significantly_in_june/3822
Most Popular... This Week • Last 30 Days • Ever
Approximately 16,550 units delivered in DC between January 2019 and August 2021.... read »
UrbanTurf has compiled virtual looks at large new developments around the DC region.... read »
The seven-bedroom home hit the market on Friday and was under contract by Sunday.... read »
This year will likely go down as the year that prices for houses in DC reached new he... read »
Dubbed OZMA, the 13-story project will include roughly 7,900 square feet of ground fl... read »
The preferred mortgage product among most home buyers is the fixed-rate mortgage. How... read »
STAY DC provides rental aid and utility payment grants to at-risk District residents ... read »
The planned 8-unit development would be located on K Street right along the Potomac R... read »
Landmark Theatres is in the final stages of negotiations that would have it operating... read »
The 12,000 square foot replica of 1600 Pennsylvania Avenue went under contract last w... read »
With this weekend's DC houseboat tour a day away, UrbanTurf thought it only fitting t... read »
President Obama travels to Denver this morning to sign the stimulus bill that has bee... read »
In this week's installment of Ask An Agent, a reader wonders if there is a rule for h... read »
As The Wharf prepares to begin construction, DC's houseboat community heads to its ne... read »
In this week's installment of Ask An Agent, a reader asks a fairly common question th... read »
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Visit guides.urbanturf.com or start browsing below!
Intro guides for first-time home buyers
Awesome and unusual real estate from across the DC Metro