WASHINGTON (AP) — U.S. home construction fell in June to the slowest pace in nine months, a setback to hopes that housing is regaining momentum and will boost economic growth this year.
Construction fell 9.3% last month to a seasonally adjusted annual rate of 893,000 homes, the Commerce Department said Thursday. That was the slowest pace since last September and followed a 7.3% drop in May, a decline even worse than initially reported.
Applications for building permits, considered a good indicator of future activity, were also down in June, dropping 4.2% to a rate of 963,000 after a 5.1% decline in May.
The U.S. Census Bureau and the Department of Housing and Urban Development jointly announced the following new residential construction statistics for June 2014:
BUILDING PERMITS
Privately-owned housing units authorized by building permits in June were at a seasonally adjusted annual rate of 963,000. This is 4.2 percent (±1.5%) below the revised May rate of 1,005,000, but is 2.7 percent (±1.8%) above the June 2013 estimate of 938,000.
Single-family authorizations in June were at a rate of 631,000; this is 2.6 percent (±1.4%) above the revised May figure of 615,000.
Authorizations of units in buildings with five units or more were at a rate of 301,000 in June.
HOUSING STARTS
Privately-owned housing starts in June were at a seasonally adjusted annual rate of 893,000. This is 9.3 percent (±10.3%)* below the revised May estimate of 985,000, but is 7.5 percent (±14.4%)* above the June 2013 rate of 831,000.
Single-family housing starts in June were at a rate of 575,000; this is 9.0 percent (±10.1%)* below the revised May figure of 632,000.
The June rate for units in buildings with five units or more was 305,000.
HOUSING COMPLETIONS
Privately-owned housing completions in June were at a seasonally adjusted annual rate of 789,000. This is 12.0 percent (±8.3%) below the revised May estimate of 897,000, but is 3.4 percent (±11.6%)* above the June 2013 rate of 763,000.
Single-family housing completions in June were at a rate of 586,000; this is 6.5 percent (±9.4%)* below the revised May rate of 627,000.
The June rate for units in buildings with five units or more was 198,000.
The worse-than-expected June performance reflected a big drop in activity in the South, where construction plunged by 29.6% last month.