U.S. Housing Starts Rose 10.5%; Number Of Building Permits Issued In The U.S. Rose 1.8%
(For August)
U.S. housing starts in August rose 10.5% to 598.000 vs. revised (5.000 lower) 541.000 July reading. The consensus was at 550.000.
On year level U.S. housing starts are up 2.9%
Chart 1. U.S. Housing Starts
Source: U.S. Census Bureau
Number of building permits issued in the U.S. in August rose 1.8% to 569.000. The consensus was at 560.000.
On year level number of building permits issued in the U.S. are down -1.9%.
Chart 2. U.S. Building Permits
Source: U.S. Census Bureau
September 21st, 2010 at 8:56 am
Does it mean there will be even more empty houses? 🙂
September 21st, 2010 at 10:34 am
You can look this piece of data either as positive (homebuilders anticipate stronger demand) or negative (additional units added to inventory). I would definitely go for the negative… The level is so depressed that we could see some upside here, but not upside needed to bring GDP growth. Same as with vehicle sales, new housing starts level is bellow the replacement rate (level needed to keep the number of units constant).
September 21st, 2010 at 10:47 am
I share your negative opinion about this, but give us your “2 cents” on the following:
– Has the recession ended for housing or it entered the recession again (as stated latetly on CNBC)?
– Do you believe recovery is possible with such weak housing data?
September 21st, 2010 at 11:56 am
Housing is in recession since mid 2007 and I think the housing inventory (both reported and shadow) doesn’t warrant any kind of sustainable recovery in foreseeable future.
We have to keep in mind that new and existing home sales are so depressed that it is almost inevitable that we will see pickup in activity, but even a moderate pickup in activity is not enough to clear the inventory.
As I already wrote couple times I believe sustainable economic recovery is in my view impossible without recovery in construction spending.
November 12th, 2011 at 9:16 am
raşit…
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