US home construction slumped in July
WASHINGTON — Homebuilders pulled back sharply on construction of apartment complexes in July, causing housing starts to tumble to a three-month low.
The Commerce Department said Wednesday that housing starts fell 4.8 per cent in July to a seasonally adjusted annual rate of 1.16 million. Groundbreakings for multi-family buildings such as apartments slumped 17.1 per cent, while single-family house construction slipped 0.5 per cent.
Home construction has increased 2.4 per cent year-to-date, but the gains have done little to offset the dwindling number of homes listed for sale. The shortage of properties for sale has pushed prices up at a faster pace than income growth, making home ownership less affordable for many would-be buyers.
Stephen Stanley, chief economist at Amherst Pierpont Securities, said that because of the lack of homes on the market “builders are attempting to meet that need but are hamstrung to a degree by shortages of skilled workers” and land restrictions.