Housing Starts Fell for second straight month, Retailer Toys “R” Us filed for bankruptcy
September 19, 2017
The Commerce Department reported that Housing Starts fell in August for the second straight month, slipping 0.8% from July to an annual rate of 1.18 million units; although, this was above the 1.17 million expected. The declines are due in part to shortages of land and skilled labor as well as rising costs for building materials. On a positive note, year-over-year Housing Starts rose 1.4%.
Single-family Housing Starts, which make up the biggest share of the housing market, rose 1.6% with increases in the South and West and declines in the Midwest and Northeast. Multi-family dwellings fell 5.8% from July and are down 23% from August 2016. Building Permits, a sign of future construction, rose 5.7% from July, hitting their highest level since January. The Housing Starts report measures the number of residential units on which construction had begun each month.
Storied retailer Toys “R” Us filed for bankruptcy protection just ahead of the holiday shopping season. The near 70-year-old seller of toys pioneered the big-box format for toy sales and was the place to shop for generations of parents. A heavy debt burden and competition from on line retailers are a few key reasons for the bankruptcy announcement. Toy “R” Us will remain open into the holiday shopping season as it works out a court-supervised reorganization plan.
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