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US Housing Starts Decline 5.6% YoY In July (1 Unit Starts Back Rise To 1991 Levels, Apartment Construction Slowing)

This is a syndicated repost published with the permission of Snake Hole Lounge. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

According to the US Census Bureau, US housing construction starts declined 5.6% on a year-over-year (YoY) basis for July. You can see the declining trend since 2012.

hsyoy

Apartment (5+ unit) starts fell 22% YoY.

5+yoy

On a MoM basis, 1 unit starts declined only 0.47% in July while 5+ starts declined 17%.

startsjuly17

1 unit starts (single family starts) have finally clawed their ways back to 1991 levels, despite the near zero Fed Funds target rate since late 2008.

unitrstartsfed

You can see the slowdown in apartment construction starts (orange line) during 2017. Here is a closer look which shows the slowdown in apartment starts as The Fed merrily raises their target rate.

5+fed

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