US Housing Starts Tick Higher in June, But Permits and Completion Signal Construction Slowdown

Housing Starts Climb, But Single-Family Slows June Housing Starts Rose 4.6% Month-Over-Month to 1.321 Million Units, Slightly Reversing May’s Deckline. However, on a year-oer-year basis, Starts edged 0.5% Lower. The Modest Rebound CAME ALMOST ENTIRELY FROM MULTIFAMILY constraction, as Single-Family Starts Droped 4.6% to 883,000-The Lowest Since Early Spring.

Multifamily Starts, Whoa Reached and Annual Rate of 414,000, Remain Elegated But Continue to Trend Lower from Last Year’s Highs. The Uneven Recovery in Housing Starts, Especialy in the Single-Family Segment, May Weight on Demand for Materials Like Lumber, Steel, and Construction Services.

Complections Fall Sharply, Suggesting Bottlenecks Housing Completion Plunged 14.7% from May to A Seasonally Adjusted Annual Rate of 1.314 Million Units – A Steep 24.1% Decline From The Prior Year. Single-Family Complets Droped 12.5% to 908,000, While Multifamily Completion Fel to 383,000.

The Slowdown in Completion Suggests Possible Labor Shortages or Supple Chain Bottlenecks Still Affecting the Construction Pipeline. With Fewer Homes Reaching Market, Homebuilders May Further Delays in Realizing Revenues, and Inventory Shortages Could Persist in Key Regional Markets.

Market Outlook: Bearish Bias on Housing Sector Momentum Despite a minor increase in overall Starts, the Continued Decline in Single-Family Permits and Completion Points to a Bearish Outlook for the Residential Construction Sector. Unless Mortgage Rates Ease or Credit Conditions Improve, The Sector May Remain Under Pressure. Traders Should Expert Headwinds for Homebuilder Stocks and Construction-Linked Sectors in the Near Term.

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