18 WESTERN PALLET
May Housing Starts Rebound; Have We Hit Bottom?
John Greene, Forest2Market
After plunging two consecutive months (30 percent in April alone) to the lowest level since early 2015, US homebuilding appears to have bottomed and marginally reversed course in May. While the global economy is not yet put COVID-19 in the rearview mirror, there is reason for optimism as applications for home loans surged to an 11-year high in mid-June.
Housing Starts, Permits & Completions
Privately-owned housing starts were up 4.3 percent in May to a seasonally adjusted annual rate (SAAR) of 974,000 units. Single-family starts increased 0.1 percent to a rate of 674,000 units; starts for the volatile multi-family housing segment jumped 15.0 percent to a rate of 299,000 units.
Privately-owned housing authorizations jumped 14.4 percent to a rate of 1.220 million units in May. Single-family authorizations were up 11.9 percent to a pace of 745,000 units. Privately-owned housing completions were down 7.3 percent to a SAAR of 1.115 million units. Per the US Census Bureau Report, seasonally-adjusted total housing stats by region included: