Housing Construction Bounced Back in June

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Source: The Hill

Housing construction popped back to life in June after a three straight months of declines, reaching the fastest pace since February.

Housing starts increased 8.3 percent last month to a seasonally adjusted annual rate of 1.22 million units, the Commerce Department said Wednesday. Single-family building rose 6.3 percent to a seasonally adjusted annual rate of 849,000 units, the second-highest rate this year, from May’s 799,000. June’s report showed that multi-family construction, like apartment buildings, jumped 13.3 percent to 366,000.

“We expect to see continued strength in starts, particularly with single family, as builders seek to capitalize on strong demand in the market coupled with a shortage of housing supply,” said Scott Volling, a partner with PwC.

Volling said affordability concerns are lingering, especially among first-time home buyers, as rising materials costs drive up median home prices.

The National Association of Home Builders (NAHB) said Tuesday that confidence slipped to 64 in July over those increasing costs, especially for lumber.

Still, the market is showing signs of strengthening despite continued headwinds.

Read full story on The Hill.

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