According to data from the Census Bureau home building increased 3.9% in July from June. This stems from the buyers’ interest in new homes since the market is so low on existing home inventory. New home starts bumped up to a seasonally adjusted annual rate of 1.452 million which beat out the expectation from the Census Bureau of 1.448 million.
Single-family homes rose 6.7% in July with a seasonally adjusted annual rate of 983,000. This makes the number of units started up to 5.9% from July of last year.
“Buyers embraced new homes in the first half of this year as a welcome alternative to the massive shortage of existing homes. Homebuilders responded to the rebound in demand by ramping up production in the first five months of 2023 and rolling out incentives. The latest readings show activity skewing noticeably toward the single-family space,” said George Ratiu.