Housing Starts, Permits Rise Sharply in June

Washington, DC, July 19, 2011 -- Housing starts increased sharply in June, according to figures from the Commerce Department.

Housing starts rose 14.6% to a seasonally adjusted annual rate of 629,000, the highest level since January, the data showed.

There was a large increase in starts of multifamily units and a smaller gain in starts of single-family homes, the department reported.

The report was much better than expected. Economists had been looking for a 3.6% increase to 580,000.

However, May’s starts were revised lower to a 549,000 rate from 560,000 previously estimated.
 
In another good sign for housing, building permits rose 2.5% to a seasonally adjusted annual rate of 624,000 in June.

Permits for single-family homes rose 0.2% to a 407,000 rate.

Permits for apartments and condos increased 8.2% to 198,000.

The number of homes under construction rose 1% to a 419,000 annual rate, while the number of units completed in June fell 1.7% to an annual rate of 535,000.