Washington, DC, United States (4E) – Construction of newly built homes in the U.S. fell 9.3 percent in June to an annual pace of 893,000 on a seasonally adjusted basis, driven by declines for single-family homes and apartments, according to an official report released Thursday.
The result was lower than forecast by economists surveyed by MarketWatch, who called for starts rate of 1.02 million for June, compared with an initial estimate of 1 million for May. The U.S. Commerce Department said on Thursday that it revised May’s starts to a pace of 985,000.
Among the four regions in the U.S., only the South, which is the biggest market, posted a starts drop in June.
Across the whole country, starts for single-family homes dropped 9 percent in June, while starts in buildings with at least five units fell 11.3 percent.
At the same time, the annual rate of permits, which gauges future demand, dropped 4.2 percent to 963,000 in June, boosted by apartments. Meanwhile, permits for single-family homes climbed 2.6 percent to a pace of 631,000.