Builders completed 1.47 million units in June — 3.3% below May’s revised annual estimate of 1.52 million. The rate of completion of single-family housing reached 986 thousand, while the rate of housing units in buildings consisting of five units or more reached 476 thousand. Despite June’s lower reading, several factors paint a promising picture for overall construction activity, according to NerdWallet home expert Holden Lewis. “Homebuilders started building on fewer residences in June than in May,” Lewis said. “Looking at the bigger picture, construction activity is strong. We have seen a two-month increase in the construction of single-family homes, which are in short supply. At the same time, builders are laying the groundwork to build fewer apartments.” Kelly Mangold, principal at RCLCO Real Estate Consulting, highlighted positive construction sentiment, which rose in July to the highest level since June 2022. “There are many factors that suggest the housing market is transitioning into a recovery as construction sentiment continues to improve,” she said. Builders benefit from a lack of resale inventory, but high mortgage rates are a threat. Lower affordability combined with ongoing supply-side challenges and stricter Acquisition, Development and Construction (AD&C) lending standards may stifle construction momentum.”
