Single-family housing starts and permits both fell in June, reflecting a challenged market with builders facing rising prices, economic uncertainty, and ongoing affordability concerns.
According to the U.S. Census Bureau and Department of Housing and Urban Development, single-family starts ran at a seasonally adjusted annual rate of 895,000 in June, 0.2% below the May rate. Single-family permits declined 2.4% from May to a rate of 871,000 in June.
The lower starts and permit activity reflects a market where builder confidence is suppressed. According to the NAHB, builder sentiment toward current sales conditions, future sales conditions, and buyer traffic remain weighed down by macroeconomic factors and weak consumer confidence.
“Many potential buyers remain on the sidelines as they wait for lower mortgage rates, more certainty on inflation, and a clearer economic outlook,” NAHB chairman Bill Owens said.
Overall, privately owned housing starts in June ran at a seasonally adjusted annual rate of 1,427,000, 19% above the revised estimate for May and 3.5% higher than the rate a year ago. The starts rate for buildings with five units or more was 513,000 in June.
Building permits for all privately owned housing fell 3% from the estimated May rate to 1,367,000 in June. On a year-over-year basis, the June estimate fell 2.3%. Authorizations for buildings with five or more units ran at a rate of 445,000 in June.
Privately owned completions in June ran at a seasonally adjusted annual rate of 1,392,000, 3.3% above the May estimate and 1.5% above the June 2025 rate. Single-family completions increased 6.6% from May to an estimated rate of 964,000. The June rate for buildings with five units or more was 413,000.
