07/18/2025

U.S. Single-family Homebuilding Hits 11-month Low

Meanwhile, building permits slump

U.S. single-family homebuilding dropped to an 11-month low in June as high mortgage rates and economic uncertainty hampered home purchases, suggesting residential investment contracted again in the second quarter.

The report from the Commerce Department on Friday also showed permits for future construction of single-family homes tumbled to more than a two-year low last month, aligning with downbeat sentiment among homebuilders. The slump in demand has increased the supply of homes on the market, discouraging builders from breaking ground on new housing projects. New housing inventory is at levels last seen in late 2007.

Though the housing market accounts for a small share of gross domestic product, it has a bigger economic footprint through purchases of furniture and appliances and other activity. There are concerns that protracted housing market weakness could spill over to the broader economy.

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