Single-family housing starts declined in June to the lowest rate since July 2024 as elevated interest rates, rising inventories and ongoing supply-side issues continue to act as headwinds for the housing sector.
Due to a solid increase in multifamily production, overall housing starts increased 4.6% in June to a seasonally adjusted annual rate of 1.32 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
The June reading of 1.32 million starts is the number of housing units builders would begin if development kept this pace for the next 12 months. Within this overall number, single-family starts decreased 4.6% to an 883,000 seasonally adjusted annual rate and are down 10% compared to June 2024. The multifamily sector, which includes apartment buildings and condos, increased 30% to an annualized 438,000 pace.
Single-family building conditions continued to weaken in June as housing affordability challenges caused builder traffic to move lower as buyers moved to the sidelines. Rising levels of resale inventory are also a headwind for the industry.
Single-family home building in the South is down 12.4% on a year-to-date basis, far outpacing declines in the Northeast and the West. However, single-family home building is up 10% on a year-to-date basis in the Midwest, where housing affordability conditions are generally better than much of the nation.
On a regional and year-to-date basis, combined single-family and multifamily starts were 28.8% higher in the Northeast, 13.1% higher in the Midwest, 8.1% lower in the South and 0.6% lower in the West.
Overall permits increased 0.2% to a 1.40-million-unit annualized rate in June. Single-family permits decreased 3.7% to an 866,000-unit rate and are down 8.4% compared to June 2024. Multifamily permits increased 7.3% to a 531,000 pace.
Looking at regional permit data on a year-to-date basis, permits were 16.9% lower in the Northeast, 8.2% higher in the Midwest, 3.3% lower in the South and 3.7% lower in the West.
The declines for single-family home building have caused the number of single-family homes under construction to level off. There are currently 622,000 single-family homes under construction, which is 6% lower than a year ago. The number of apartments under construction in June, 739,000, is 18.8% lower than a year ago.
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Bringing a fresh look to a historical home’s landscape while still maintaining some original charm means navigating a fine line between past and present.
Challenge: Designer Sara Yant of Twistleaf was tasked with reimagining outdoor spaces in the Historic District of Fredericksburg, Texas, including for a Queen Anne Victorian mansion, a carriage house, a five-unit barn conversion and three 1930s bungalows. “We needed to create a cohesive look that would complement the different architectural styles and prioritize an intuitive circulation between the spaces,” Yant says.
There were some hiccups along the way that impacted the original plan. A long-abandoned and crumbling drainage pipe beneath the mansion’s front yard was a safety risk. Stringent watering restrictions also were implemented for the Texas Hill Country during that time.
Solution: Yant replaced the fencing and gates with period-appropriate designs. She also updated the hardscape using a mix of concrete, bricks and decomposed granite to create paths and relaxing courtyards and retreats. Removing the crumbling pipe allowed her to reinforce the surrounding ground.
She finished the space with a mix of native and adapted plants that complement the architecture of the Queen Anne Victorian home. Black and blue sage and soft leaf yucca provide seasonal interest and attract butterflies and hummingbirds. American beautyberries (Callicarpa americana, USDA zones 6 to 10; find your zone), dwarf palmetto palms (Sabal minor, zones 7 to 10), aromatic aster (Symphyotrichum oblongifolium, zones 3 to 9) and inland sea oats (Chasmanthium latifolium, zones 3 to 8) define the restorative green retreat by the bungalows.
“We also reduced the amount of lawn in the original design and replaced several areas [including the space shown here], with Leavenworth’s sedge (Carex leavenworthii, zones 6 to 9) as a water-conscious solution,” Yant says.