Housing Starts Decline in June But Single-Family Permits Show Some Growth

Housing starts in June hit 1,434,000, -8% below the revised May estimate of 1,559,000 and -8.1% below the June 2022 rate of 1,561,000. According to the U.S. Census Bureau, single‐family housing starts in June were at a rate of 935,000, -7% below the revised May figure of 1,005,000.

“While builders have slowed construction activity as interest rates have approached 7%, we anticipate mortgage rates will stabilize later this year in anticipation of the end of Federal Reserve’s tightening cycle,” said Danushka Nanayakkara-Skillington, assistant VP for forecasting and analysis for the National Association of Home Builders. “This could bring home buyers back to the market as affordability conditions improve.”

She said one optimistic note in the data was that single-family permits hit their highest pace since June 2022. Privately‐owned housing units authorized by building permits in June were at a seasonally adjusted annual rate of 1,440,000, -3.7% below the revised May rate of 1,496,000 and is -15.3% below the June 2022 rate of 1,701,000. The U.S. Census Bureau said single‐family authorizations in June were at a rate of 922,000, +2.2% above the revised May figure of 902,000. 

Click here to download MSA, state and national building permits data YTD through June, 2023.