Overall housing starts increased 6.3% in June to a seasonally adjusted annual rate of 1.64 million units, according to the latest data from the Commerce Department. Weakening permit numbers for both the single-family and multifamily markets are putting a damper on inventory growth, however.
The June reading of 1.64 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 increased 6.3% to a 1.16 million seasonally adjusted annual rate. The multifamily sector, which includes apartment buildings and condos, increased 6.2% to a 483,000 pace.
Housing Starts: 1.64 million (+6.3 month-over-month, +29.1% year-over-year)
Multifamily Starts: 474,000
Single-Family Starts: 1,091,000
Building Permits: 1.59 million (-5.1% month-over-month, +23.3% year-over-year)
Multifamily Permits: 483,000
Single-Family Permits: 1,063,000
Completions: 1.32 million (-1.4% month-over-month, +6.5% year-over-year)
Multifamily Completions: 416,000
Single-Family Completions: 961,000
Regional Year-to-Date Data
Midwest: +25.5%
South: +21.5%
West: +28.0%
Northeast: +41.4%
What the Industry Is Saying
“While lumber prices have just recently begun to trend downward, builders continue to deal with rising prices of other building materials, such as oriented strand board, and major delays in the delivery of these goods,” said Chuck Fowke, chairman of the National Association of Home Builders (NAHB). “We are thankful that the White House recently held a meeting to seek solutions to these supply chain issues that are harming housing affordability.”
“The recent weakening of single-family and multifamily permits is due to higher material costs, which have pushed new home prices higher since the end of last year,” said NAHB Chief Economist Robert Dietz. “This is a challenge for a housing market that needs additional inventory.”
