The U.S. Department of Commerce just released June 2017 housing starts and building permit data for the U.S. and Canada. Does it match what you’re seeing in the market?
The recovery you’ve heard about is here. Data shows June housing starts (released July 19) increased 8.3% while Canada saw a 9.1% increase from May (data released July 11). And it’s not just one segment of the housing market that’s rebounding. In the U.S., single-family starts increased 6.3% to 849,000 units, while multi-family increased 13.3% to 366,000 units.
What’s that mean for the future? More growth, analysts say. Total U.S. permits, which is an indicator of future construction, increased by 7.4% to 1,254,000 units (SAAR).
Louisville’s WDRB reports that home builders in the area are putting up new houses “at the fastest rate since the housing crash of 2008.” They are also careful to point out that the new construction market is still nowhere near its pre-recession peak. And regardless of positive news like the SBCA reports, many industry experts doubt the numbers will ever return to the boom days of the early 2000s.
In Louisville, recovery from the crash has been slower than the nation as a whole—a fact evident in the SBCA numbers, if you’re looking for it. While overall housing starts are up according to the national numbers, not every corner of the country is full speed ahead. In fact, the South region of the United States actually saw a 3.8% decrease in housing starts in June. Fortunately, for the total U.S. picture, the Northeast’s 83.7% gain and the Midwest’s 22% gain offset the South’s loss.
The same holds true in Canada. While starts rose in two regions—Quebec (+ 29.7%) and Ontario (+ 46.6%)—numbers for the Atlantic Provinces, Prairie Provinces and British Columbia were all down double digits. Two regions floated the national numbers.
So we can say the recovery is here—but it depends entirely upon where “here” is. How about you? What are you seeing in your market? Working hard to keep up … or still looking for the recovery everyone is talking about?
For a quick overview of the number, check out the SBCA’s (Structural Building Components Association) reports page.