Homebuilders pushed the rate of new construction starts up by 5.9 percent from June to July, despite a decline in the single-family housing sector that set a low for the year. Multi-family unit starts, which were responsible for the overall increase, have increased by 33.6 percent since July 2012, while single-family starts added 15.4 percent over the same period.

Construction starts on single-family homes set the slowest monthly pace of the year in July, declining about 10 percent from 2013's February peak and continuing the market sector's torpor since April. A boost from multi-unit housing, however, brought total housing starts up in July after a decline in June.

Starts of single-family homes fell 2.2 percent in July from a month earlier to an annual rate of 591,000, the Commerce Department reported in August, ending two months of gains and marking the lowest level of single-family starts since November. Construction of multi-family homes, a volatile sector that includes apartments and condominiums, grew 25.5 percent in July from the prior month. The multi-family surge, which halted two months of declines in that category, pushed overall housing starts to an annual pace of 896,000, up 5.9 percent from June and 20.9 percent from a year ago.

Building permits for single-family residences climbed to a 613,000-unit pace in July, the report also showed, signaling a potential pickup in construction by exceeding the number of starts. Total building permits reached a 943,000-unit pace in July, 2.7 percent higher than June's rate and 12.4 percent higher year-over-year. Multi-unit housing added 13.5 percent to reach a 303,000-unit rate after two consecutive months of decline.

Housing units under construction increased by 29.8 percent year-over-year in July to 636,000 units, 2.1 percent more than the revised June estimate of 623,000 units. Multi-family units again led the increase, adding 42 percent since July 2012, compared to a 20.2 percent increase in single-family home completions over the same period.

Completed housing units gained 15 percent year-over-year in June to reach a 774,000-unit annual rate, just 1.8 percent above the revised June estimate of 760,000 units. The 571,000 single-family unit rate increased 22.5 percent year-over-year, mitigating the multi-family sector's 1.5 percent YoY decline.