U.S. Housing Starts Surge 4.6% in June, Permits Rise

The U.S. housing market showed signs of resilience in June, with the annualized rate of new housing starts surging to 1.321 million units. This figure exceeded the average forecast of 1.3 million units from 53 economists, who had predicted a range between 1.181 million and 1.35 million units. The increase marks a 4.6% rise from the previous month, which had seen a 9.7% decline. This data indicates a mixed performance in the housing sector, with single-family home starts decreasing to 883,000 units, while multi-family home starts rose to 438,000 units.

Building permits, which serve as a leading indicator of future construction activity, increased slightly from 1.394 million units in May to 1.397 million units in June. This figure surpassed the expected 1.387 million units, suggesting that developers remain optimistic about future demand. However, the number of completed housing units in June dropped to 1.314 million from 1.54 million in the previous month. Single-family home completions decreased to 908,000 units, and multi-family home completions fell to 406,000 units.

The data suggests that while there is a strong demand for new housing, supply chain issues and labor shortages may be hindering the completion of projects. The increase in building permits indicates that developers are confident in future demand, but the decline in completions could lead to a shortage of available housing in the coming months. The housing market remains a critical component of the U.S. economy, and these trends will be closely watched by policymakers and investors alike.