Multifamily Construction Surges 76% in June as Single-Family Homes Trail Behind

Construction of new single-family homes across the U.S. stalled in June as builders continued pulling back due to high mortgage rates, but the multifamily sector roared back to life, the U.S. Census Bureau reported Friday.

Single-family housing starts last month were at a seasonally adjusted annual rate of 895,000, down 0.2% from May and 3.2% less than a year ago—a pullback attributed to elevated construction financing costs and weakening buyer demand.

However, total private-owned housing starts surged 19% month over month and 3.5% year over year to 1,427,000, driven up by a staggering jump in multi-family construction.

According to the federal agency, the monthly rate for units in buildings with five units or more was 513,000, up 76% from May's 295,000 pace, which was the lowest level in over a year.

Meanwhile, 1,367,000 residential building permits were issued nationwide in June, down 3% from May and 2.3% below the June 2025 pace. 

Single-family permits dipped 2.4% month over month, with 871,000 authorizations granted. 

It follows Thursday's release of the latest National Association of Home Builders/Wells Fargo Housing Market Index, which showed that homebuilder confidence in the market for newly built single-family homes dropped to 34 this month, down from a revised 36 in June.  Any reading below 50 reflects negative sentiment about the market.

"Builders continue to face a difficult cost environment," says Danushka Nanayakkara-Skillington, National Association of Home Builders' assistant vice president for forecasting and analysis. "Higher long-term Treasury yields have kept mortgage rates elevated, while rising building material prices, transportation costs and insurance expenses are making new construction more expensive. The monthly decline underscores the ongoing challenges facing residential construction despite a persistent shortage of available homes."

Source: Realtor.com