Multi-Family Construction Surges 76% in June

Multi-family housing construction surged by 76% in June, significantly boosting overall housing starts in the United States. The U.S. Census Bureau reported on Friday that the seasonally adjusted annual rate for units in buildings with five or more units reached 513,000, a substantial increase from May's pace of 295,000. This surge in multi-family construction helped drive total private-owned housing starts up by 19% month over month and 3.5% year over year, reaching a rate of 1,427,000.

In contrast, the single-family housing sector experienced a slight slowdown. Single-family housing starts in June were at a seasonally adjusted annual rate of 895,000, a 0.2% decrease from the previous month. Builders are reportedly pulling back from single-family construction due to persistent high mortgage rates. Residential building permits issued nationwide in June also saw a slight dip, down 3% from May and 2.3% below the June 2025 pace, with single-family permits declining 2.4% month over month to 871,000 authorizations.

Despite the challenges in single-family starts and permits, the completion rate for new homes showed positive movement. Total private housing completions rose by 3.3% from May and 1.5% compared to the previous year, reaching 1,392,000 units. Single-family completions demonstrated stronger growth, increasing by 6.6% from May to a rate of 964,000 units. This indicates that while new projects may be slowing, previously started homes are being finished at a faster pace.