US new residential building activity probably took breather in July

US housing starts and building permits data for July is scheduled to release today. The housing starts and building permits registered 9.8% and 7.0% growth in last month respectively. The offsetting movements in single-family and multifamily construction activity probably left the number of new housing units started little changed at a seasonally adjusted annual rate of 1.175 million in July, following the apartment building-led 9.8% surge recorded in June, says Societe Generale. 

Reflecting improving demand for new dwellings, the number of one-family homes started is expected to rebound by 5.8% to a three-month high of 725,000, adds SocGen. In contrast, multifamily units started likely contracted by 8.0% to 450,000, yet remained a touch above the 441,000 Q2 average. An almost-complete reversal of the surge in building permits over the May-June span associated with expiring tax breaks in New York City probably left new approvals in July 14.4% lower at 1.145 million.