Housing Recovery False Alarm – Starts, Permits Plunge In July As Rental Units Collapse

The recession evidence just keeps piling up with a slew of bad housing data…

From Zero Hedge:

Following June’s huge surprise jumps in Housing Starts (revised lower) and Building Permits (revised notably higher), July saw both starts and permits plunge (-4.8% and -4.1% respectively) dramatically missing expectations. The majority of the plunge is driven by multi-family starts crashing 35.2% YoY to its lowest since Sept 2016.

Permits’ 7.4% June surge was revised up to a 9.2% spike (the biggest since Nov 2015) before July’s plunge.

 

 

Multi-Family Starts plunged to the lowest levels since September 2016…

 

 

This is a 5.6% slump in Housing Starts…

 

 

With Multifamily starts crashing 17.1% sequentially and 35.2% year-over-year – this is the 5th month in a row of year-over-declines…something that hasn’t happened outside of recession…

 

 

Permits drop was also dominated by multi-family…

 

 

The Northwest and Midwest saw over 15% crashes in starts MoM but The South dominates the trend with a 16.5% collapse year-over-year.