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Economic news
16.08.2024

U.S. housing starts and building permits plunge in July

The monthly report on new residential construction from the Commerce Department revealed on Friday that housing starts tumbled by 6.8 per cent m-o-m in July to a seasonally adjusted annual pace of 1.238 million (the lowest level since May 2020), while building permits plunged by 4.0 per cent m-o-m to a seasonally adjusted annual rate of 1.396 million (the lowest level since June 2020).

Economists had predicted housing starts of 1.330 million units for July and building permits of 1.430 million units.

Data for June was revised to show homebuilding increasing at a pace of 1.329 million units, instead of rising at a rate of 1.353 million units as originally announced.

According to the report, permits for single-family homes, the largest segment of the market, slipped by 0.1 per cent m-o-m in July, while approvals for the multi-family homes segment (includes 2 to 4 and 5 or more housing units) declined by 11.1 per cent m-o-m.

In the meantime, groundbreaking on single-family homes plummeted by 14.1 per cent m-o-m in July, while multi-unit starts climbed by 11.7 per cent m-o-m. 

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