Housing starts increased 3.9% in July to a seasonally adjusted annual rate of 1.45 million, according to the U.S. Census Bureau and Department of Housing and Urban development.
Single-family housing starts grew 6.7%, while multifamily starts dropped 1.7%.
“With many home owners choosing to stay in their existing home to preserve their low mortgage rate, demand for new home construction pushed up single-family starts in July even as builders continue to struggle with increased uncertainty stemming from rising rates,” stated Alicia Huey, chairman of the National Association of Home Builders. “Builder sentiment has shown that higher mortgage rates are contributing to a decline in buyer traffic, and rates need to stabilize to prevent the housing market from slowing.”
Regionally, housing starts grew 1.0% in the Northeast, 9.9% in the Midwest and 14.0% in the West. Housing starts fell 1.3% in the South in July.
Building permits held steady month-over-month but declined 13.0% compared with July 2022, indicating a slowdown in construction activity as housing costs rise, according to NAHB.
Housing completions fell 11.8% in July to an adjusted rate of 1.32 million, a 5.4% drop compared with July 2022.
