New York boosts housing starts, permits

Housing starts rose 9.1% to a seasonally adjusted rate of 1,066,000 units in June from May but down 26.9% from a year ago, according to the latest Department of Commerce data. The figures surpassed consensus expectations for a sequential 1.5% decline, Carl Reichardt, an analyst with Wachovia Capital Markets LLC’s office in San Francisco, said in a note. However, the month-over-month increase was largely due to a surge in apartment building starts and permits in New York, where there was a change in building codes, he said. Construction of new single-family homes slipped 5.3% to a rate of 647,000 units in June from May and down 43% from a year earlier. On a regional basis, starts fell year-over-year 44.9% in the Northeast, 45.7% in the Midwest, 36.9% in the South and 52.7% in the West. In June, the number of building permits issued rose 11.6% to a seasonally adjusted rate of 1,091,000 in June from May but down 23.9% from a year ago. Again, the building code change in New York was largely responsible for the increase. Excluding this market, permits increased only 0.7% between May and June. The number of permits issued for single-family homes fell 3.5% to a rate of 613,000 in June from May and down 39.7% from a year ago. On a regional basis, permits declined year-over-year by 41.4% in the Northeast, 39.4% in the Midwest, 37.6% in the South and 43.5% in the West.