Single Family Starts Up for Month

The U.S. Housing and Urban Development and Commerce Department reported that the starts of single-family residences posted a 3.5% gain in June over May. For the year, the category is off 4.9% compared to the first six months of 2018.

And a decrease in apartment construction starts pushed total starts down 1% but there are 616,000 apartments currently under construction, which is the highest that count has been since April 2017.

Single-family permits in June had a small boost but they too are behind last year's rate - this time by 6.1%. And single-family homes under construction as of June are at a similar pace as last year, leading the chief economist for the National Association of Homebuilders Robert Dietz to forecast upcoming gains in permit authorizations and stabilization in single-family starts because of falling mortgage rates.

"We expect additional single-family growth, as areas beyond the exurbs respond to for-sale housing demand and ongoing healthy labor markets," he remarks.