U.S. new-home construction fell more than expected in June, reflecting a steep drop in multifamily housing starts, according to www.bloomberg.com.
Residential starts fell 0.9% in March from an annualized rate of 1.265 million to 1.253 million. Building permits plunged by 6.1% to a 1.22 million annualized rate. Economists had expected housing starts to fall by 0.6%.
Single-family starts rose 3.5% to 847,000, and building permits rose 0.4% to 813,000. Multifamily homes decreased 9.2%, and building permits dropped 16.8%. Two of four regions posted increases, led by the Northeast with a 31.3% increase.
The figures on single-family home construction indicate the sector is relatively stable as lower borrowing costs and more subdued price appreciation make homeownership more affordable. Home construction has not contributed to economic growth since the fourth quarter of 2017.
