Housing Starts Edge Higher, Multi-Family Surges

Washington, DC, Aug. 17, 2010--Housing starts edged higher in July but the gain was offset somewhat by a steeper drop over the past two months than previously estimated, according to the Commerce Department.

Starts rose 1.7% in July to a seasonally adjusted 546,000 annualized units, the Commerce Department reported Tuesday. This was weaker than the 555,000 pace expected by economists.

June starts were revised lower to a 537,000 pace from 549,000 previously reported. This was the lowest level since October and down 8.7% from the prior month.

After surging in the first four months of the year, starts fell 22% in May and June after a tax break for home buyers expired.

Multifamily starts rebounded 32.6% in July, almost erasing a 33.3% decline in the prior months.

Starts of single-family homes fell 4.3% to a 432,000 rate. This is the lowest level since May 2009.

Building permits fell 3.1% to a seasonally adjusted annual rate of 565,000 in July. This is the lowest level since May 2009.

Building permits for single-family homes fell 1.2% to a 416,000 rate. This is the lowest level since April 2009.