Housing starts and permits both rose in June for the first time in four months according to the Census Bureau’s New Residential Construction Report.
Starts rose 8.3%, with single family units up 6.%. Permits rose 7.4%, with single family permits up 4.1%.
The quarter ends on a positive note but the overall pace is lower than in the first quarter.
New Privately‐Owned Housing Units Started
New Privately‐Owned Housing Units Completed
New Privately‐Owned Housing Units Authorized in Permit‐Issuing Places
Quarter Comparison
- Starts Down 6.0%
- Completions Up 0.2%
- Permits Down 3.4%
Residential construction rates to subtract from second quarter GDP.
Mike “Mish” Shedlock
FYI
MBA Mortgage Applications Bounce Back Strong
https://www.peoplespunditdaily.com/news/economy/2017/07/19/mba-mortgage-applications-july-14-2017/
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That’s weekly and it from 4th of July week
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GDP is a very bad measure of the health of an economy.
But since everyone writes about it, it can move markets.
The first to react are the automated “trading bots” which explains many “flash crash” incidents.
But for time horizons greater than a few days, GDP means little to nothing.
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+1
In a free society, where all decisions are freely made, and there are no manipulations, using economic activity as a substitute for economic health, is probably sound. But when everything is manipulated to pump up activity, and every dollar spent is either mandated or someone elses money; estimating economic health by measuring GDP makes no more sense than estimating how thirsty someone is, by measuring the amount of water he inhaled during a waterboarding procedure.
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Residential building from Columbus Ohio has been strong in the multi-family units for several years but for the first time since the recession, supply is greater than demand. Builders are racing to get what is in the pipeline completed and not many newer multi-family units are being planned. Single-family home construction is steady at best. I don’t see housing and it’s multiplier effects, furniture, home improvement and appliances adding much to GDP going forward, especially with births and immigration near zero.
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