The monthly
report on new residential construction from the Commerce Department showed on Friday
that housing starts increased by 1.6 per cent m-o-m in April to a seasonally
adjusted annual pace of 1.361 million, while building permits
fell by 4.7 per cent m-o-m to a seasonally adjusted annual rate of 1.412 million
(the lowest level since May 2024
(1.407 million)), recording the sharpest decrease since March 2024 (-5.0 per
cent m-o-m).
Economists had forecast
housing starts of 1.370 million units in April and building permits of 1.450
million units.
Data for March
was revised to show homebuilding rising at
a pace of 1.339 million units, instead of increasing at a rate of 1.324 million
units as originally reported, and permits growing at a pace of 1.481 million
units, instead of advancing at a rate of 1.467 million units as previously
reported.
According to
the report, permits for single-family homes, the largest segment of the market,
tumbled by 5.1 per cent m-o-m in April,
while approvals for the multi-family homes segment (includes 2 to 4 and 5 or
more housing units) plunged by 3.7 per cent m-o-m.
In the meantime, groundbreaking on single-family
homes dropped by 2.1 per cent m-o-m in April, while multi-unit starts surged by 11.1 per cent m-o-m.