Single-family housing starts dropped 2.2% from May to a seasonally adjusted rate of 980,000 units, according to the U.S. Department of Housing and Urban Development.
On a year-over-year basis, single-family starts are up 16.1%, according to HUD.
The National Association of Home Builders attributed June’s decrease in single-family starts to elevated interest rates for mortgages and development loans.
“Lower single-family starts are in line with our latest builder surveys, which show that while builders are concerned about the current high interest rate environment, they believe that mortgage rates will moderate in the coming months and lead to higher construction in the latter part of 2024,” NAHB Chairman Carl Harris said in a statement.
Overall housing starts increased 3% in June to a seasonally adjusted annual rate of 1.35 million units.
