Finance 0

Stronger Than Expected Housing Report In August, Especially Completions

By Kurt Osterberg · On September 18, 2024

Building Permits

Privately-owned housing units authorized by building permits in August were at a seasonally adjusted annual rate of 1,475,000.

This is 4.9 percent above the revised July rate of 1,406,000, but is 6.5 percent below the August 2023 rate of 1,578,000.

Single-family authorizations in August were at a rate of 967,000; this is 2.8 percent above the revised July figure of 941,000.

Authorizations of units in buildings with five units or more were at a rate of 451,000 in August.

Housing Starts

Privately-owned housing starts in August were at a seasonally adjusted annual rate of 1,356,000.

This is 9.6 percent (±11.4 percent) above the revised July estimate of 1,237,000 and is 3.9 percent (±13.0 percent) above the August 2023 rate of 1,305,000.

Single-family housing starts in August were at a rate of 992,000; this is 15.8 percent (±12.0 percent) above the revised July figure of 857,000.

The August rate for units in buildings with five units or more was 333,000.

Housing Completions

Privately-owned housing completions in August were at a seasonally adjusted annual rate of 1,788,000.

This is 9.2 percent (±28.2 percent) above the revised July estimate of 1,637,000 and is 30.2 percent (±31.9 percent) above the August 2023 rate of 1,373,000.

Single-family housing completions in August were at a rate of 1,029,000; this is 5.6 percent (±11.9 percent) below the revised July rate of 1,090,000.

The August rate for units in buildings with five units or more was 740,000.

The Bloomberg Econoday consensus was for a 5.1 percent bounce in starts. The actual bounce was 9.6 percent from a tiny negative revision.Completions huge positive revisions. Completions jumped 16.9 percent vs original posted July numbers. I will discuss completions in a separate post.Details from the Census Bureau New Residential Construction report.Housing Starts Single Family vs Multi-Family The trend on starts is negative, especially multi-family.Housing Starts 1959-Present To put the “strong” housing report numbers into proper perspective, starts are 18 percent below January of 1959.More By This Author:It’s Rate Cut Wednesday, This Is What The Fed Will Say Today Industrial Production Rises Strongly From Steep Negative Revisions Retail Sales Rise A Feeble 0.1 Percent, Yet Generally Better Than Expected