Housing Starts

*housing starts are up slightly. The chart gives you a better view. Things may sound better but a picture is worth a thousand words. California, which has the highest housing meltdown, is ready to declare bankruptcy next month. If you think it can't happen, guess again. And if you think it can't happen here next year, then you are naive. The problems that lie ahead are monumental. After 50 years of spend spend spend with little regulation and not enough taxes (although the spending is the bigger issue), the hard choices that will keep politicians awake each night into the next election cycle are of their own making, with a little help from their friends (lobbyist's) and their electorate (sheep are stupid). And the issue is jobs jobs jobs stupid. Until we are back at below 6% conservatively, we will be looking forward to less less less and less......

Total housing starts were at 532 thousand (SAAR) in May, rebounding from the all time record low in April of 454 thousand. The previous record low was 488 thousand in January (the lowest level since the Census Bureau began tracking housing starts in 1959).

Building Permits:
Privately-owned housing units authorized by building permits in May were at a seasonally adjusted annual rate of 518,000. This is 4.0 percent (±1.7%) above the revised April rate of 498,000, but is 47.0 percent (±2.1%) below the May 2008estimate of 978,000.

Single-family authorizations in May were at a rate of 408,000; this is 7.9 percent (±1.5%) above the revised April figure of 378,000.

Housing Starts:
Privately-owned housing starts in May were at a seasonally adjusted annual rate of 532,000. This is 17.2 percent (±14.4%) above the revised April estimate of 454,000, but is 45.2 percent (±5.8%) below the May 2008 rate of 971,000.

Single-family housing starts in May were at a rate of 401,000; this is 7.5 percent (±14.2%)* above the revised April figure of 373,000.

Housing Completions:
Privately-owned housing completions in May were at a seasonally adjusted annual rate of 811,000. This is 3.3 percent (±20.6%)* below the revised April estimate of 839,000 and is 28.8 percent (±11.1%) below the May 2008 rate of 1,139,000.

Single-family housing completions in May were at a rate of 491,000; this is 9.4 percent (±13.8%)* below the revised April figure of 542,000.

Note that single-family completions of 491 thousand are still significantly higher than single-family starts (401 thousand). This is important because residential construction employment tends to follow completions, and completions will probably decline further.