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07-20-20 | Economic News

June Housing Starts Increase

Housing Demand is Rising

NAHB weighs in on new residential construction numbers stating low mortgage rates and lean inventories helped bring about gains.

The U.S. Department of Commerce and the U.S. Department of Housing and Urban Development have announced the new residential construction statistics for June with a 17.3% rise for total housing starts. A seasonally adjusted annual rate of 1.19 million units was reported including an increase in single-family starts of 17.2% above the revised May numbers to an 831,000 rate. The multifamily sector for buildings with five units or more also saw an increase in June of 17.5% to a 355,000 rate.

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According to the National Home Builders Association (NAHB) chairman, Chuck Fowke, the record low mortgage rates are contributing to these increases, "despite the challenge of the virus and elevated unemployment."

NAHB chief economist Robert Dietz said, "Single-family construction is expanding off April lows due to lean inventories of new and existing homes," adding that growing costs such as lumber prices will pose a challenge to builders.

A rise of 2.1% of overall permits was seen in June to a seasonally adjusted annual rate of 1.24 million units. Single-family building permits were 11.8% above revised May numbers at a rate of 834,000 and multifamily permits dipped 13.4% to a rate of 407,000.

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