The number of building permits and housing starts saw bigger-than-expected increases in June 2011 compared with the previous month as well as June 2010 numbers, while housing completion rates went down, says the U.S. Census Bureau and the Department of Housing and Urban Development (HUD).
Despite more promising numbers than what the private sector was expecting, the housing market isn’t exactly recovered, U.S. Commerce Secretary Gary Locke said.
“While today’s new construction report is encouraging, the housing market remains fragile,” says Locke. “If America fails to meet its obligations, it would lead to a sharp decline in household wealth and higher mortgage rates, which would profoundly damage the housing market’s recovery. Now is the time for members of both parties to make tough choices and take a balanced approach to solve this problem, so we can focus on getting more Americans back to work.”
By the numbers, the rate of building permits authorizing privately owned housing units went up 2.5% from May rates, and is 6.7% above June 2010 estimates, with a seasonally adjusted annual rate of 624,000. This shift follows a 8.2% May increase.
Additionally, June saw a seasonally adjusted annual rate of 629,000 housing starts, which is 14.6% above May estimates, and 16.7% more than the previous year’s rates.
Single-family authorizations and housing starts also saw slight increases since May and the previous year, but housing completions have decreased 1.7% from May’s seasonally adjusted rates, and 39.3% from last June, with a seasonally adjusted annual rate of 535,000. The number of housing units authorized, but not started, fell 8.1% from last year’s rates.
View the data here.
Written by Alyssa Gerace
