A closer look at the data reveals diverging trends between single-family and multi-family construction.
Single-family housing starts decreased by 2.2% in June but showed a 5.4% year-over-year increase.
In contrast, multi-family starts surged by 22% for the month but experienced a significant 23.4% year-over-year decline.
This shift suggests a changing landscape in the housing market, with weakness moving from single-family to multi-family starts compared to the previous year and early 2023.
Building Permits:
Looking ahead, building permits, a key indicator of future construction activity, rose 3.4% to an annual rate of 1.45 million. However, this overall increase masks differing trends within housing types.
Single-family permits decreased by 2.3% from May, indicating potential headwinds for this segment.
Conversely, multifamily permits saw a substantial 19.2% increase from the previous month, suggesting a possible rebound in apartment and condominium construction.