New-home construction for single-family homes saw an improvement in July, despite builders’ concerns about affordability headwinds. Single-family housing starts rose 1.3% to 876,000 units last month, the Commerce Department reported. The largest regional increases in single-family homebuilding last month occurred in the South.
But a decline last month in multifamily production for condos and apartments led to an overall decrease in total housing starts by 4% in July. That marked the third consecutive month for overall decreases on the Commerce Department’s index. Still, “builders remain confident about the market, and this is reflected in recent modest gains in single-family starts,” says Greg Ugalde, chairman of the National Association of Home Builders.