The latest numbers from the U.S. Census Bureau and the Department of Housing and Urban Development show the number of single-family homes that began construction in July fell 9.9 percent from the month before. Along with reports that new home sales slowed this summer, the drop paints a picture of a new-home market in retreat. The reality is more nuanced. Danushka Nanayakkara-Skillington, the National Association of Home Builders’ vice president for forecasting and analysis, says there are challenges but also bright spots. “Builders remain cautious as elevated mortgage rates, rising construction costs, and economic uncertainty continue to limit demand,” Nanayakkara-Skillington said. “The drop in single-family construction is especially concerning given the persistent housing shortage in many markets. Looking ahead, permits are trending positively for both single-family and muti-family construction.” According to the numbers, permits for future construction rose 5 percent in July, with authorizations for single-family homes up 2.5 percent month-over-month. (source)
