June data shows single-family starts fell 0.2% to 895,000 units, with permits dropping 2.4% amid high mortgage rates and oversupply.
U.S. single-family housing starts declined 0.2% in June to a seasonally adjusted annual rate of 895,000 units, marking a third consecutive monthly drop. Permits for future construction fell 2.4%, reaching their lowest level in 10 months, as higher mortgage rates and a surplus of unsold homes weighed on activity.
The decline reflects broader pressures from rising land and material costs, with single-family starts down 3.2% year-on-year. Regional data showed drops in the Northeast, South, and Midwest, while the West saw an increase. Economists note that recent housing affordability legislation may take time to boost construction.
Residential investment is expected to modestly drag on GDP growth in the coming quarters, according to analysts.