Single family housing starts increased 7.5% to 401,000 in May, the highest monthly total since last November. There was a similar 8% rise in permits to 408,000. The increase was 12% from last months’ initial lower estimate of starts by the Census Bureau. Residential development remains depressed but is clearly improving from the cyclical low during the winter. However, the parallel 62% surge in May multi family starts has a different interpretation. It is a bounce back from a similar plunge a month earlier. Multi family starts remain at the lowest level in many decades in a market that is not yet ready to improve.

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