Housing starts climb 6.3% in June as building permits hit eight-month low

Housing starts rose 6.3% in June to a seasonally adjusted annual rate of 1.643 million units, according to reuters.com. The rate was higher than economists’ expectations of 1.59 million units.

Additionally, housing starts were up 29.1% compared with June 2020. Applications for building permits, a good indication of future activity, fell 5.1% to 1.598 million units in June—the lowest since October 2020.

Single-family housing starts rose 6.3% to 1.16 million units, and multifamily starts rose 6.2% to 483,000 units.

The report from the Commerce Department suggested a severe shortage of houses, which has boosted prices and caused bidding wars throughout the U.S., could continue for a while. Demand for houses is being driven by low mortgage rates and a desire for more space during the COVID-19 pandemic.

Though lumber prices are falling from record highs, builders are paying more for steel, concrete and lighting and are facing shortages of appliances.

Date : Jan. 01, 0001