By KIMBERLEY HAAS
Privately-owned housing starts surpassed estimates in May, beating expectations as the housing market remains tight.
The U.S. Census Bureau and the U.S. Department of Housing and Urban Development announced the latest residential construction statistics on Tuesday morning.
“Privately-owned housing starts in May were at a seasonally adjusted annual rate of 1,631,000. This is 21.7% (±14.8%) above the revised April estimate of 1,340,000 and is 5.7% (±10.8%) above the May 2022 rate of 1,543,000. Single‐family housing starts in May were at a rate of 997,000; this is 18.5% (±14.1%) above the revised April figure of 841,000,” a press release says.
Principal Kelly Mangold of RCLCO Real Estate Consulting in Maryland said this is the second month in a row that new home starts have increased as these homes account for a growing share of for-sale inventory.
Many homeowners with low mortgage rates are opting to stay put for the time being, and affordability concerns remain as the low inventory of homes has kept prices high for entry-level buyers, Mangold said in a statement.
The May rate for units in buildings with five units or more was 624,000, according to the release.
Housing completions also did well last month.
“Privately‐owned housing completions in May were at a seasonally adjusted annual rate of 1,518,000. This is 9.5% (±12.3%) above the revised April estimate of 1,386,000 and is 5.0% (±13.0%) above the May 2022 rate of 1,446,000. Single‐family housing completions in May were at a rate of 1,009,000; this is 3.9% (±13.9%) above the revised April rate of 971,000,” the release says.
The May rate for units in buildings with five units or more was 493,000, according to the release.
Privately‐owned housing units authorized by building permits were a mixed bag. They were at a seasonally adjusted annual rate of 1,491,000. That is 5.2% above the revised April rate of 1,417,000. However, that is 12.7% below the May 2022 rate of 1,708,000.
Single‐family authorizations were at a rate of 897,000, 4.8% above the revised April number of 856,000. Authorizations of units in buildings with five units or more were at a rate of 542,000 in May, according to the release.
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