Metrics for new residential construction – building permits, housing starts and home completions – declined in June. The annual rate for permits fell 4.2 percent from the May pace, and the rate gauging housing starts lost 9.3 percent from the previous month, though both remained above year-over-year levels. Both components declined for the second month in a row.

Residential construction indicators declined across the board in June, as housing permits and housing starts were down for the second consecutive month and completions, which increased in May, also fell.

Permits for residential construction were issued as a seasonally adjusted annual rate of 963,000 units, a decrease of 4.2 percent from the May rate of 1,005,000, according to a July 17 report from the Census Bureau and the Department of Housing and Urban Development. The May rate was revised upward from the 991,000 pace originally reported. June permitting was 2.7 percent higher than the June 2013 rate of 938,000.

Residential construction starts in June declined 9.3 percent from May, reaching a seasonally adjusted annual rate of 893,000 units, but remained 7.5 percent higher than the 831,000 estimate for starts in June 2013. The May rate was adjusted down to 985,000 units, from the original estimate of 1,001,000 units.

Completions were at a seasonally adjusted annual rate of 789,000 compared to 897,000 in May, a 12.0 percent decline. The June rate was 3.4 percent higher than the rate of completions a year earlier, 763,000.

Single- and Multi-Family Home Construction
Permits for single-family units were issued at a rate of 631,000, 2.6 percent higher than in May and 0.6 percent above the 627,000-unit rate a year earlier. The May number was revised to 615,000 from 619,000. Permits for multi-unit buildings were issued at an annual rate of 301,000, compared to 363,000 in May.

Single-family starts reached a rate of 575,000 units, down 9.0 percent month-over-month and 4.3 percent year-over-year. The original estimate of 624,000 starts in May was revised upward to 632,000. Multifamily unit starts were estimated at 305,000 compared to 344,000 the previous month.

Single-family units were completed at a rate of 586,000 units compared to 627,000 in May, a decline of 6.5 percent, and 541,000 the previous June, an 8.3 percent increase. Multifamily completions were at a rate of 198,000 units, down 23 percent from the previous month.

Non-Seasonally Adjusted Components
On a non-seasonally adjusted basis, 91,400 permits were issued in June compared to 92,200 in May and 85,700 a year earlier. There were 60,800 single-family permits issued during the month.

Non-seasonally adjusted starts in June totaled 85,200, 58,500 of which were single-family units. There were 93,200 total starts and 60,900 single-family starts in May.

On an unadjusted basis, 69,200 units were completed in June, 50,700 of which were single-family units. The previous month there were 73,200 units completed, including 52,500 single-family units.