Things are not shaping up well for the overall national housing market outlook. According to new data from the U.S. Department of Commerce, housing starts dropped 2% in June — the lowest level since September 2021.
Permits for new construction also slowed last month. Consumers are blaming high prices and a roller coaster when it comes to mortgage rates that have risen and fallen several times over the past few months.
Single-family home activity recently dropped to a two-year low. Analysts say that the housing market has already had a negative impact on GDP.
Single-family housing starts, the biggest share of home building, fell more than 8% to less than a million — the first time it’s been that low in two years. Single-family home building did increase in the Midwest but fell 25% in other parts of the country — the largest drop since January 2021.
