US housing starts decreased 4.8% in July to a seasonally adjusted annual rate of 1,155,000, according to the US Department of Housing and Urban Development and the Commerce Department. July starts were 5.6% lower than in July 2016.
The largest decline was in the more volatile multi-family construction sector, while single-family starts were nearly unchanged from June. Multi-family construction was at its highest in 2015 and has since declined as more Americans are looking to purchase single-family houses.
The number of building permits issues for single-family homes, which indicates future building activity, were unchanged from June at a seasonally adjusted annual rate.
The size of new single-family homes has decreased during the second quarter of 2017, according to US Census Bureau data. This is a good sign for the housing market, according to the National Home Builders Association.
Directly after the recession home sizes rose because highend wealthy buyers returned to buying homes sooner. A decline in home sizes indicates that more households including first-time buyers are now investing in housing.
Builders’ confidence in the market for new single-family homes gained in August, according to the National Association of Home Builders/Wells Fargo Housing Market Index. The cost of building lots, labour and building materials remain a concern.
Total sawn softwood imports and imports from Canada have declined since the US imposed preliminary countervailing duties on most Canadian softwood in April.
The US has increased softwood imports from Europe, while purchasing from Brazil has remained steady and imports from Chile have even declined in the first half of 2017.
