US Housing Starts Increase Driven by Multifamily Construction

Reported 3 months ago

US home construction increased in June with a 3% rise in total housing starts to a 1.35 million annualized rate, primarily due to a 19.6% surge in multifamily construction. However, single-family housing starts fell to an eight-month low, reflecting the real estate market's struggle with high interest rates. Building permits also rose by 3.4%, indicating a pickup in future construction activity, though authorizations for single-family homes decreased. Builders are adjusting their focus to match demand, with a decline in the number of homes under construction and fading single-family construction pace. Builder sentiment and homebuilder confidence have also declined, amidst hopes for interest rate cuts by the Fed and efforts by builders to boost sales with price reductions and incentives. Overall, there was a 10.1% increase in total housing completions, led by multifamily projects, according to the Commerce Department's report.

Source: YAHOO

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