WASHINGTON–U.S. housing starts finished August at a seasonally adjusted annual rate of 598,000, 1.5 percent ahead of the revised July estimate of 589,000, according to figures released this morning by the U.S. Census Bureau.
The August total was 29.6 percent less than the August 2008 rate of 849,000. Single-family housing starts in August were at a rate of 479,000, 3 percent behind the revised July figure of 494,000 and the first monthly decline in this indicator after a five-month run of increases. According to a statement from the National Association of Home Builders, single-family home starts slowed down because the $8,000 first-time home-buyer tax credit, part of the American Recovery and Reinvestment Act of 2009, is set to expire in November.
Joe Robson, chairman of NAHB, said “the window is basically closed” for builders who want to start a new home that can be finished in time to take advantage of the tax credit. The association has called for the extension of the tax credit for another year, and to extend it to all income-eligible buyers of primary residences.