Housing Starts Up +3.5% to 1.35 Million in May, Tracking +20.3% Year-Over-Year

Housing starts in May were at a seasonally adjusted annual rate of 1,350,000, +5% above the revised April estimate of 1,286,000 and +20.3% above the May 2017 rate of 1,122,000. The Census Bureau said single-family housing starts in May were at a rate of 936,000, +3.9% above the revised April figure of 901,000. The May rate for units in buildings with five units or more was 404,000. “Ongoing job creation, positive demographics and tight existing home inventory should spur more single-family production in the months ahead,” said NAHB Chief Economist Robert Dietz. “However, the softening of single-family permits is consistent with our reports showing that builders are concerned over mounting construction costs, including the highly elevated prices of softwood lumber.”