New Residential Building Permits: June Count Beats Forecast
July 19, 2016
by Doug Short
The U.S. Census Bureau and the Department of Housing and Urban Development have now published their findings for June new residential building permits.
The U.S. Census Bureau and the Department of Housing and Urban Development have now published their findings for May new residential building permits. The latest reading of 1.161M was an increase over 1.138M in May and above the Investing.com forecast of 1.150M.
Here is the opening of this morning's monthly report:
Privately-owned housing units authorized by building permits in June were at a seasonally adjusted annual rate of 1,153,000. This is 1.5 percent (±1.3%) above the revised May rate of 1,136,000, but is 13.6 percent (±0.6%) below the June 2015 estimate of 1,334,000.
Single-family authorizations in June were at a rate of 738,000; this is 1.0 percent (±1.5%)* above the revised May figure of 731,000. Authorizations of units in buildings with five units or more were at a rate of 384,000 in June. [link to report]
Here is the complete historical series, which dates from 1960. Because of the extreme volatility of the monthly data points, a 6-month moving average has been included.
Here is the data with a simple population adjustment. The Census Bureau's mid-month population estimates show substantial growth in the US population since 1960. Here is a chart of housing starts as a percent of the population. We've added a linear regression through the monthly data to highlight the trend.
A Footnote on Volatility
The extreme volatility of this monthly indicator is the rationale for paying more attention to its 6-month moving average than to its noisy monthly change. Over the complete data series, the absolute MoM average percent change is 4.4%. The MoM range minimum is -24.0% and the maximum is 33.9%.
For visual confirmation of the volatility, here is a snapshot of the monthly percent change since 1990.
For additional perspectives on residential real estate, here is the complete list of our monthly updates: