Housing starts in June were at a seasonally adjusted annual rate of 1.321 million, an increase of 4.6% compared with May but down 0.5% compared with June 2024, according to estimates from the U.S. Census Bureau and U.S. Department of Housing and Urban Development.
Most of the increase was due to a surge in multifamily housing starts.
Starts of detached single-family homes were at a rate of 883,000, a decrease of 4.6% compared with May. Starts of multi-family dwellings (five units or more per building) were at a rate of 414,000, an increase of 30.6% compared with the previous month.
Residential building permits were at an annual rate of 1.397 million, an increase of 0.2% compared with May but down 4.4% compared with June 2024.
Permits for single-family homes were at a rate of 866,000, a decrease of 3.7% compared with May while authorizations for multifamily units were at a rate of 478,000, an increase of 8.1%.
Housing completions were at an annual rate of 1.314 million, a decrease of 14.7% compared with May and down 24.1% compared with June 2024.
“Housing starts ticked up in June, narrowly exceeding consensus expectations,” says Odeta Kushi, deputy chief economist for First American, in a statement. “The increase was driven by a sharp jump in multifamily starts as single-family starts fell compared to May.”
“Single-family permits sagged for the fourth consecutive month as builders pull back amid mounting challenges, including ongoing affordability issues, rising material costs and tariff-related uncertainties, elevated new-home supply, and growing competition from the resale market,” Kushi says. “The continued decline in single-family permits, combined with weakened builder sentiment, points to a slowdown in future single-family construction.”
The good news is that home builder sentiment has increased slightly, after falling to the lowest level seen in decades. Helping to boost
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