Multi-Family Housing Pushes Starts Down

Privately-owned housing starts took a breather in August, coming in at a seasonally adjusted annual rate of 956,000. This is 14.4% below the revised July estimate of 1,117,000, but is 8.0% above the August 2013 rate of 885,000. Single-family housing starts in August were at a rate of 643,000, 2.4% below the revised July figure of 659,000. The August rate for units in buildings with five units or more was 304,000.

“The August drop in multifamily starts is not too surprising, given how volatile the numbers have been the last 18 months,” said David Crowe, chief economist of the National Association of Home Builders (NAHB).  “And while single-family starts registered a slight decline, low mortgage rates, affordable home prices and pent-up demand will keep single-family production moving forward in 2014.”