According to the Census Bureau total housing permits fell by -1.8% in July from June to a seasonally adjusted annual rate of 560,000.
Interestingly the decline in housing permits in July was driven by multi-family units. According to the Census Bureau, single family housing permits were up 5.8% from last month but 2-4 unit properties were down -21.7% and 5+ unit properties were down -26.3% from the previous month.
Compared to last year single family housing permits were down -20.3%, 2-4 unit properties were down -48.6% and 5+ unit properties were down -73.2%.
This data is a representation of the broader real estate market. While demand for single family homes appears to have stabilized in recent months, the commercial real estate market continues to free fall, adding significant stress to bank's balance sheets.
The underlying trend is that there is not sufficient demand for real estate, residential or commercial, to stabilize real estate values due to escalating delinquencies.