After Several Months of Gains, Single-Family Home Starts Dropped in June

After four straight months of gains, home building activity dipped in June, with single-family home builders feeling headwinds from elevated construction costs and rising mortgage rates. But while starts declined, permits rose, fueled by weakness in the existing-home sales market. Single-family permits in June increased 2.2% to a 922,000 unit rate, the National Association of Home Builders' Eye on Housing reports, citing data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau, although permits are still down 2.7% compared with last year.

Overall housing in June decreased 8% to a seasonally adjusted annual rate of 1.43 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.

The June reading of 1.43 million starts is the number of housing units builders would begin if development kept this pace for the next 12 months. Within this overall number, single-family starts decreased 7% to a 935,000 seasonally adjusted annual rate. The three-month moving average (a useful gauge given recent volatility) edged up to 929,000 starts ... . On a year-over-year basis, single-family housing starts are down 7.4% compared to June 2022.

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