Nationwide housing starts rose 4.8 percent in June to a seasonally adjusted annual rate of 1.19 million units, according to newly released data from the U.S. Department of Housing and Urban Development and the Commerce Department. Overall permit issuance increased 1.5 percent to a seasonally adjusted annual rate of 1.15 million.
“This month’s uptick in production is an indicator that the housing market continues to move forward,” said NAHB Chairman Ed Brady, a home builder and developer from Bloomington, Ill. “At the same time, builders are adding inventory at a cautious pace as they face lot shortages and regulatory hurdles.”
“The June report is consistent with our forecast for a gradual but consistent recovery of the housing market,” said NAHB Chief Economist Robert Dietz. “Single-family production should continue to strengthen throughout the year, buoyed by job growth, new household formations and low mortgage interest rates.”
Single-family housing starts rose 4.4 percent to a seasonally adjusted annual rate of 778,000 units in June while multifamily production ticked up 5.4 percent to 411,000 units.
Regionally in June, combined single- and multifamily starts increased in the Northeast and West, with respective gains of 46.3 percent and 17.4 percent. The Midwest registered a 5.2 percent loss and the South fell 3.4 percent. However, single-family production rose in all four regions.
Both sectors posted permit gains. Single-family permits edged up 1 percent to a rate of 738,000 while multifamily permits rose 2.5 percent to 415,000.
Permit issuance increased 9.4 percent in the Northeast and 8.3 percent in the South. Meanwhile, the Midwest and West registered respective losses of 2.8 percent and 10.1 percent.