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**Multifamily Sector Drives June Increase in U.S. Housing Starts**
Residential construction starts rose 4.6% in June to a seasonally adjusted annual rate of 1.32 million units, according to data released by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The growth was driven primarily by a sharp 30% monthly increase in apartment construction, which reached an annualized rate of 438,000 units. In contrast, single-family home starts declined by 4.6%, marking the lowest level in nearly a year.
The National Association of Home Builders attributed the slowdown in single-family construction to several key factors, including elevated mortgage interest rates, growing home inventories, and persistent supply chain challenges.
Permit issuance reflected a similar trend. Single-family permits fell by 3.7% to an annualized rate of 866,000 units, while permits for multifamily construction increased 7.3% to a pace of 531,000 units.
Despite June’s month-over-month gains in the multifamily segment, year-over-year figures tell a different story. Single-family housing under construction totaled 622,000 units in June, representing a 6.6% decline from the previous year. Meanwhile, apartment units under construction dropped 18.8% year-over-year, falling to 739,000 units.
Overall, the data highlights the ongoing divergence between single-family and multifamily housing trends, with multifamily development currently playing a more robust role in driving national housing start figures.
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