WASHINGTON—New home construction accelerated in July even as building permits, a key indicator of future activity, moved lower, according to the U.S. Census Bureau.
Privately-owned housing starts rose to a seasonally adjusted annual rate of 1.43 million units in July, up 5.2% from June and 12.9% higher than a year earlier. Single-family starts increased 2.8% to an annual rate of 939,000, while construction of multifamily units with five or more apartments advanced to 470,000.
By contrast, permits for new housing construction fell. The government reported 1.35 million units authorized by permits in July, a 2.8% decline from June and 5.7% below the July 2024 pace. Permits for single-family homes inched up 0.5% to 870,000, but approvals for multifamily projects came in at 430,000.
Completions, which reflect finished projects, reached an annual rate of 1.42 million units in July, up 6% from June but 13.5% below last year. Single-family completions climbed 11.6% to 1.02 million, while multifamily completions totaled 385,000.