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Nationwide housing starts rose 4.8% 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% 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 Ed Brady, chairman of the National Association of Home Builders. “At the same time, builders are adding inventory at a cautious pace as they face lots 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% to a seasonally adjusted annual rate of 778,000 units in June while multifamily production ticked up 5.4% to 411,000 units.
Regionally in June, single- and multifamily starts increased 46.3% in the Northeast but only 17.4%. in the West. The Midwest registered a 5.2% loss and the South fell 3.4%. However, single-family production rose in all four regions.
Both sectors posted permit gains. Single-family permits edged up 1% to a rate of 738,000 while multifamily permits rose 2.5% to 415,000.