Real Estate

Housing starts suddenly rebound in June

Building permits reflect more construction to come

Housing starts suddenly rebounded from May’s drop as residential construction picked up its pace in June.

Privately owned housing starts increased to a seasonally adjusted rate of 1.22 million in June, according to the latest report from the U.S. Census Bureau and the U.S. Department of Housing and Urban Development. This is up 8.3% from May’s 1.12 million and up 1.2% from last year’s 1.19 million.

Of those, single-family housing starts increased 6.3% to 849,000 homes, up from 799,000 in May. The chart below shows the increase in the total number of housing starts.

Click to Enlarge


(Source: U.S. Census Bureau, HUD)

An increase in building permits shows this sudden increase is likely to continue next month. Privately owned housing units authorized by building permits increased to a seasonally adjusted annual rate of 1.25 million. This is up 7.4% from 1.17 million in May and up 5.1% from 1.19 million last year.

Single-family authorization also saw an uptick in June, jumping 4.1% from May’s 779,000 to an annual rate of 811,000 in June.

Privately owned housing completions increased 5.2% from May’s 1.14 million and 8.1% from 1.11 million in June 2016 to a seasonally adjusted annual rate of 1.2 million in June.

However, this monthly increase was due mainly to an increase in commercial housing as single-family housing completions increased just 0.4% from May’s 795,000 to 798,000 in June.

The rebound in new housing construction came despite the recently announced lower builder confidence, which slipped due to concerns over rising material costs, according to the latest National Association of Builders and Wells Fargo Housing Market Index.

Most Popular Articles

Housing inventory crisis continues in 2022

Want to know where housing demand is headed? Look at the MBA purchase application data from the second week of January to the first week of May.

Jan 12, 2022 By

Latest Articles

loanDepot’s CEO picks up pricey real estate in Florida

Anthony Hsieh, the CEO of loanDepot, has been buying some pricey real estate in Florida, pushing his property portfolio to over $150 million.

Jan 18, 2022 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please