By: Dennis Norman
This morning the US Census Bureau and US Department of Housing and Urban Development (HUD) issued a their report on New Residential Construction for June 2009 showing an increase in new home construction activity.
The report shows the following:
- Building permits issued for single-family residences in June were at an annual rate of 430,000 which is a 5.9% increase over May, but still 28.9% below the rate a year ago.
- The South region had the largest one month increase at 11.1%, followed by the West at 1.2%. The Midwest and Northeast had no change from May.
- Housing starts for single-family residences in June were at an annual rate of 470,000 which is a 14.4% increase over May and is 28.2% below last year.
- The Midwest had the largest one month increase in starts at 26.4%, followed by the Northeast at 24.3%, the West at 15.2% and the South at 8.1%.
- Single-family homes completed in June were at a rate of 538,000 which is an increase of 8.9% from May and 36.1% down from a year ago.
- The West saw the biggest jump in completed homes with an increase of 30.9% from May, the South saw a 8.5% increase, the Midwest a 1.1% increase and the Northeast had a 17.1% decline in completions from May.
The numbers are clearly showing some increased activty in new home construction. Hopefully, until sales increase, any increases in construction will be modest so that we don’t end up increasing the inventory of unsold homes above where it is now. In 10 days the new home sales numbers for May will be released and hopefully will show increases to substantiate the increased construction activity.
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