Housing Starts Up in July, Propelled by Multifamily

(Image courtesy of Census Bureau; Breakout image courtesy of Robert So/pexels.com)

Privately-owned housing starts in July were at a seasonally adjusted annual rate of 1,428,000, the Census Bureau reported Aug. 19.

That’s up 5.2% above the revised June estimate of 1,358,000, and 12.9% above the July 2024 rate of 1,265,000.

Single-family housing starts were at a rate of 939,000, up 2.8% from the revised June figure of 913,000. The July rate for units in buildings with five or more units was 470,000.

Completions were at a seasonally adjusted annual rate of 1,415,000, up 6% from the revised June estimate of 1,335,000, but 13.5% below the July 2024 rate of 1,635,000.

Single-family housing completions in July were at a rate of 1,022,000, up 11.6% from the revised June rate of 916,000. For buildings with five units or more, the July rate was 385,000.

Privately-owned units authorized by permits in the month were at a seasonally adjusted annual rate of 1,354,000, down 2.8% from the revised June rate of 1,393,000. That’s also 5.7% below the July 2024 rate of 1,436,000.

Single-family permits were at 870,000, up 0.5% from the June figure of 866,000. Authorizations of units in buildings with five or more units were 430,000.

“Housing starts jumped in July, primarily on the back of the multi-family sector. Multi-family starts surge for a second straight month, while single-family starts managed a slight rebound from the previous month,” noted First American Deputy Chief Economist Odeta Kushi. “Despite a modest uptick after four-month streak of declines, single-family permits–a leading indicator of future construction–remain near their lowest level since March 2023, signaling continued weakness in the sector.” She reported that the multifamily sector saw an 11.6% monthly rise in starts, compared with 2.8% for single-family homes.

“The monthly increase in housing starts and permits is a welcome development, but one data point doesn’t make a trend. Sustained gains are needed to demonstrate continued progress in single-family homebuilding,” she continued. “The housing market remains structurally undersupplied, and we need more hammers at work to build the homes that are still in short supply.”