In August, housing starts rebounded but housing permits declined for the second straight month. The August drop in building permits indicates that the housing market is continues to cool. …Overall housing starts rose 12.2% to a seasonally adjusted annual rate of 1.58 million units in August. Single-family starts increased 3.4% to a 935,000 seasonally adjusted annual rate and are down 4% on a year-to-date basis. Declines are expected ahead, as single-family permits decreased 3.5% to an 899,000 annualized rate and are down 6.6% on a year-to-date basis. …The multifamily sector increased 28% to an annualized 640,000 pace. Multifamily construction remains very strong given solid demand for rental housing. The number of multifamily 5+ units currently under construction is up 26.5% year-over-year. Multifamily development is being supported by a substitution effect, with frustrated or priced out prospective home buyers seeking rental housing.