The Census Bureau, Washington, D.C., reported that privately owned housing starts in June were at a seasonally adjusted annual rate of 1,238,000, 6.8% below the revised June estimate.
Permits were down 4% in June.
“The decline in new home construction mirrors our latest builder surveys, which show that buyers remain concerned about challenging affordability conditions and builders are grappling with elevated rates for builder loans, a shortage of workers and lots, and supply chain concerns for some building materials,” says Carl Harris, chairman of the National Association of Home Builders and a custom home builder from Wichita, Kansas.
Despite the downtick in production, NAHB Chief Economist Robert Dietz suggested that lending challenges will improve in the near future.
“Better inflation data points to the Federal Reserve moving to cut interest rates possibly as early as September, and with interest rates expected to moderate in the months ahead, this will help both buyers and builders who are dealing with tight lending conditions,” says Dietz.
