Multi-Family Surge Pushes Housing Starts Up Nearly 10% in June
Led by a steep jump in multi-family production, nationwide housing stats rose 9.8% to a seasonally adjusted annual rate of 1.174 million units in June, according to recently released data from the U.S. Department of Housing and Urban Development and the Commerce Department. Multi-family production was up 29.4% to a seasonally adjusted annual rate of 489,000 units, while single-family starts edged down 0.9% to 685,000 units.
“The multi-family gains this month are encouraging and show that the millennial generation continues to be drawn to the rental market,” said NAHB Chairman Tom Woods, a home builder from Blue Springs, Mo.
“While builders are reporting overall confidence in the housing market, they continue to note difficulties accessing land and labor,” said NAHB Chief Economist David Crowe. “These headwinds appear to be affecting production gains in the single-family sector.”
Regionally in June, combined single- and multi-family starts rose by 35.5% in the Northeast and 13.5% in the South. The Midwest and West posted respective losses of 0.7% and 6.0%. All four regions posted permit gains in June. The Northeast, Midwest, South and West posted respective permit gains of 2.8%, 2.9%, 10.4% and 9.5%.
Multi-family permits rose 15.3% to a rate of 656,000, while single-family permits inched up 0.9% to 687,000.
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