The US housing starts dropped during May 2016 because the multi-family housing units declined. Yet, the buildings permits gains give some positive signals ffor the second the second quarter.
As reported by US Commerce Department, the groundbreaking fell by 0.3% to an adjusted annual pace of 1.16 million units. The starts in April reached a 1.17 million-unit pace. Starts for single-family homes, which are watched closely because they signal more commitment to homeownership and provide more of an economic boost, rose 0.3% to a 764,000 pace, a three-month high.
Building permits increased by 0.7% to a 1.14 million-unit rate in May. Single-family homes building permits decreased by 2% in May, to a 726,000-unit rate and the multi-family building permits grew by 5.9%, reaching 412,000-unit pace.
Yet, the US housing starts are recovering after February’s drop of 17%.
