Single-family housing starts fell back in June after four straight monthly gains as elevated construction costs and rising mortgage rates led to a reduction in home building activity and affordability conditions worsened for home buyers.
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Overall housing in June decreased 8% to a seasonally adjusted annual rate of 1.43 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 1.43 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 7% to a 935,000 seasonally adjusted annual rate.
The three-month moving average (a useful gauge given recent volatility) edged up to 929,000 starts, as charted below. On a year-over-year basis, single-family housing starts are down 7.4% compared to June 2022.
The multifamily sector, which includes for-rent apartment buildings and condos, decreased 9.9% to an annualized 499,000 pace for 2+ unit construction in June. The three-month moving average for multifamily construction has been a solid 518,000-unit annual rate. On a year-over-year basis, multifamily construction is down 9.4%.