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June Housing Starts Dip Following The May Surge

U.S. Census Bureau released its residential construction report for June on Wednesday, the data shows a decrease in new housing projects.

What comes up must come down.

Posted July 19, 2023

Housing starts experienced a decrease in June, losing traction amid the rise in starts compared to May due to falling existing home sales.

Housing starts for seasonally adjusted annual rate (SAAR) did increase to 1.43 million in June, down 8 percent from revised May figures and down 8.1 percent from June 2022, according to the U.S. Census Bureau.

The lack of starts for June could be attributed to homebuilders’ sentiment in the market, according to Zillow.com

This decline may be a response to the slight drop in homebuilder sentiment regarding single-family sales in the next six months with mortgage rates staying elevated, despite headline gains to sentiment,” Zillow senior economist Nicole Bachaud said. “Amid uncertainty, future building activity is pulling back – but is still remaining elevated from pre-pandemic levels.

More numbers from the report:

Single-family housing starts increased to 0.94 million in June, down 7 percent from May.
Housing permits issued in June were down 3.7 percent from May and down 15.3% from a year ago, to 1.44 million.
1.48 million homes were completed in June, down 3.3 percent from May and up 5.5 percent year-over-year.

View the full June Residential Construction report, here.