Privately-owned housing starts in the U.S. fell 3.3 percent in May, to a seasonally adjusted annual rate of 975,000, 3.3 percent below the revised April rate of 1,008,000. It is 36.3 percent below the same period last year. Single family starts fared slightly better, falling just 1 percent, to a seasonally adjusted rate of 674,000.
Building permits for privately-owned housing units were at a seasonally adjusted annual rate of 969,000, 1.3 percent below the revised April rate of 982,000. Single-family authorizations in May were at a rate of 623,000, a 4 percent decline.
"Today's report clearly shows that the housing downswing is still underway, with systematic declines in both housing starts and building permits for May," said NAHB Chief Economist David Seiders. "It also squares with the results of our own builder surveys, which indicate that builders recognize the fundamental weakness on the demand side of the market and are taking the appropriate steps to limit new inventory. Evidence suggests that some pent-up demand is there, but Congress and the Administration need to do what they can to help release it. A temporary home buyer tax credit would be just the incentive that many qualified buyers need to go forward with their homeownership plans."
Housing starts fell in three out of four regions in May, with the Midwest posting a 25 percent decline from the previous month, the South posting a 4.4 percent decline and the West registering a 10.3 percent decline. Only the Northeast posted a gain for the month, with a 61.5 percent boost following a large decline in April.
Regionally, issuance of building permits was mixed in May, with the Midwest and South reporting declines of 7.6 percent and 8.6 percent, respectively, and the Northeast and West posting respective gains of 30.6 percent and 4.1 percent.
| 
