Nationwide housing starts increased 9.8 percent in June to a seasonally adjusted annual rate of 1.174 million units, according to the U.S. Census Bureau.
The increase was due to a “steep jump” of 29.4 percent in multifamily production, which reached a seasonally adjusted annual rate of 489,000 units, according to a statement from the National Association of Home Builders.
"The multifamily gains this month are encouraging and show that the millennial generation continues to be drawn to the rental market," said NAHB Chairman Tom Woods in a statement.
Single-family starts, meanwhile, decreased 0.9 percent to 685,000 units in June.
"While builders are reporting overall confidence in the housing market, they continue to note difficulties accessing land and labor," said NAHB Chief Economist David Crowe in a statement. "These headwinds appear to be affecting production gains in the single-family sector."
Regionally, total housing starts rose 35.5 percent in the Northeast and 13.5 percent in the South. The Midwest and West saw losses of 0.7 percent and 6.0 percent, respectively.
