US housing starts rebounded in June
WASHINGTON — Homebuilders ramped up construction in June to the fastest pace in four months, led by surges in the Northeast and Midwest.
Housing starts climbed 8.3 per cent in June to a seasonally adjusted annual rate of 1.22 million, the Commerce Department said Wednesday. The gain ended three straight monthly declines and marked the strongest pace of building since February. Home construction has risen 3.9 per cent year-to-date, but that slight increase has been unable to make up for the decrease in existing homes being listed for sale.
The June housing figures point to healthy demand that new construction alone has been unable to satisfy. Fewer existing homes are being listed for sale, while purchase prices for newly built homes have surged at pace more than six times wage growth. As a result, more Americans are rushing to purchase homes but are struggling to do so because of a lack of supplies and higher costs.
Builders also face higher costs for land and materials, putting a limit on just how much construction can occur.