Led by solid single-family production, total housing starts increased 17.3 percent in June to a seasonally adjusted annual rate of 1.19 million units, according to a report from the U.S. Housing and Urban Development and Commerce Department. Within this overall number, single-family starts increased 17.2 percent to an 831,000 seasonally adjusted annual rate, after an upward revision from the May estimate.
"Fueled in part by record low mortgage rates, builders are seeing solid demand for housing despite the challenges of the virus and elevated unemployment," says Chuck Fowke, chairman of the National Association of Home Builders. "Demand is growing in lower density markets, including exurbs and small metros."
"Single-family construction is expanding off April lows due to lean inventories of new and existing homes," said NAHB Chief Economist Robert Dietz. "However, builders face challenges in growing costs, particularly rising prices for lumber."
Overall permits increased 2.1 percent to a 1.24 million unit annualized rate in June. Single-family permits increased 11.8 percent to an 834,000 unit rate. Multifamily permits decreased 13.4 percent to a 407,000 pace.
