June saw a 4.6% increase in overall Housing Starts, but this was entirely driven by multi-family projects. Single-family construction dropped 4.6%. Similarly, overall Building Permits rose slightly by 0.2%, yet single-family permits declined by 3.7%. Completions fell across the board for both housing types.
What’s the bottom line?
New construction isn’t keeping pace with demand. Housing starts (1.3 million), permits (1.4 million), and completions (1.3 million) all fall short of the 1.8 million new households formed annually, on average, over the past five years – contributing to an ongoing supply shortage that continues to support home values.