Housing starts dropped to the lowest rate in nine months in June, while permits for new construction also declined, reports Reuters.
The breakdown: Multifamily construction is up, as rising rents make these buildings more attractive, but single-family home starts are at the lowest in two years.
By the numbers: “Housing starts fell 2% to a seasonally adjusted annual rate of 1.559 million units last month, the lowest level since September 2021,” according to the Commerce Department data.
- “Single-family housing starts, which account for the biggest share of homebuilding, tumbled 8.1% to a rate of 982,000 units in June, the first time that category has dropped below the 1 million mark in two years.”
- “Building permits for single-family homes—an indicator of future construction—declined 8% to a rate of 967,000 units, the lowest since June 2020.”
The NAM says: NAM Chief Economist Chad Moutray summed it up, saying, “These figures continue to reflect significant weakening in the housing market, which has been rocked by sharply higher mortgage rates, issues surrounding affordability of housing units and renewed uncertainties in the economic outlook.”