The US residential housing sector received a nice boost this morning as both Housing Starts and Building Permits for the month of June came in better than expected. That’s the first time both reports have exceeded estimates in the same month since the January report earlier this year. For each report, the actual reported number was more than 50K ahead of expectations and both readings were a four-month high. So, after a few months of declines, June’s numbers provided a nice respite from the lackadaisical numbers.
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Taking a look at the internals of the report showed solid results. For Housing Starts, the 8.3% m/m gain was driven by a 13.3% gain in multi-family units and a 6.3% gain in single-family starts. For Building Permits, it was a similar picture as single-family permits increased 4.1%, while multi-family permits were up 13.9%. It would have been preferable to see more of the gains coming from single-family units, but with both showing growth, we’ll take it. On a regional basis, starts were strongest in the Northeast and Midwest, while permits showed the strongest m/m growth in the Midwest and West regions.