Builders Cautious as Housing Starts Slump

The U.S. Census Bureau said privately-owned housing starts in May were at a seasonally adjusted annual rate of 1,001,000, 6.5% below the revised April estimate of 1,071,000, but 9.4% above the May 2013 rate of 915,000. Single-family housing starts in May were at a rate of 625,000, 5.9% below the revised April figure of 664,000. The May rate for units in buildings with five units or more was 366,000. “The dip in single-family production shows builders continue to move carefully in adding inventory,” said Kevin Kelly, chairman of the National Association of Home Builders (NAHB), and a home builder and developer from Wilmington, Del. NAHB Chief Economist David Crowe, added,  “The modest increase is evidence that builders expect continued release of pent-up demand and a gradual expansion of the housing market. We are still forecasting a 12% increase in total housing starts for the year.”