Construction started on U.S. homes fell in June to the lowest rate in almost a year, with a big slide in apartment building, according to government data released Wednesday and reported by MarketWatch.
Housing starts fell 9.9% in June to a seasonally adjusted annual rate of 836,000, the lowest level since August 2012. Starts for buildings with at least five units fell 26.7%, while starts for single-family homes declined 0.8%.
“The temporary lull in residential construction’s multi-year climb back to pre- boom/bust levels is the result of supply issues,” says real estate consultant Jim Belfiore, President of Belfiore Real Estate. “Developers, homebuilders and subcontractors are experiencing the types of growing pains that should be expected when coming off 30 to 40 year lows.”
Economists polled by MarketWatch had forecast total housing starts in June to hit an annual rate of 950,000, compared with an originally estimated May starts rate of 914,000.
On Wednesday, the government revised May’s starts rate to 928,000.
