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Multifamily Drives June Increase in U.S. Housing Starts
Residential construction starts increased 4.6% in June to a seasonally adjusted annual rate of 1.32 million units, the U.S. Department of Housing and Urban Development and the U.S. Census Bureau reported Friday. A 30% monthly increase in apartment starts to an annualized 438,000 units was responsible for the month-over-month gain, as single-family starts declined 4.6% from May to the lowest level in nearly a year.
The National Association of Home Builders cited elevated interest rates, rising inventories and ongoing supply-side issues as factors in the June decline for single-family starts.
The disparity between the two residential sectors extended to permits as well. Single-family permits decreased 3.7% to an 866,000-unit annualized rate, while multifamily permits rose 7.3% to a 531,000-unit pace.
Conversely, the year-over-year decline in apartment construction was greater than the drop-off for single-family homes. Current single-family production stands at 622,000 units, down 6.6% Y-O-Y, while the under-construction tally of 739,000 apartment units is 18.8% lower than a year ago.
- ◦Development
