Rate of Single-Family Permits Falls 3.7% Since May, Down 8.4% YoY

Media Contact: Kristen Crossman

[ST. PAUL, MINN.] The seasonally adjusted annual rate of housing units authorized in the United States ticked up 0.2 percent in June, according to the United States Census Bureau’s Building Permit Survey report released this morning. The seasonally adjusted annual rate of new privately owned units for June was 1.397 million. Single-family permits were down 3.7. percent and multi-family permits increased 8.1 percent. Year-over-year, the rate of permits is down 4.4 percent, and the rate of housing completions is down 24.1 percent.

“The uptick in multi-family development is encouraging, but the continued decline in single-family permitting is a serious concern for would-be homeowners,” said Nick Erickson, executive director of Housing Affordability Institute. “Even more troubling, housing completions are down 24 percent year-over-year — clear evidence that overall production is heading in the wrong direction. We need bold, coordinated housing reform at the local, state, and federal levels to reverse this trend and expand access to attainable housing.”

MONTHLY ACTIVITY

Building Permits: In June, the number of privately-owned housing units authorized by permits reached a seasonally adjusted annual rate of 1.397 million. This reflects a slight increase of 0.2% compared to May’s revised figure of 1.394 million. However, it’s down 4.4% from the June 2024 rate of 1.461 million. Permits for single-family homes came in at 866,000, a 3.7% drop from May’s revised total of 899,000. Meanwhile, permits for buildings with five or more units were issued at an annual rate of 478,000.

Housing Starts: Housing starts for privately-owned units in June were recorded at a seasonally adjusted annual rate of 1.321 million. This marks a 4.6% increase from the previous month’s revised estimate of 1.263 million but represents a slight 0.5% dip from the June 2024 rate of 1.327 million. Starts for single-family homes fell 4.6% month-over-month to 883,000. For multifamily buildings with five or more units, starts were at a rate of 414,000.

Housing Completions: Completions of privately-owned housing units in June totaled a seasonally adjusted annual rate of 1.314 million, showing a significant 14.7% decline from May’s revised figure of 1.540 million. Compared to June 2024, completions were down 24.1%. Single-family completions dropped 12.5% from the prior month to 908,000. Completions for buildings with five or more units stood at 383,000.

Source: United States Census Bureau’s Building Permit Survey

ABOUT HOUSING AFFORDABILITY INSTITUTE 

Founded in 2018, Housing Affordability Institute is a 501c(3) think tank seeking to increase housing affordability and access while advancing homeownership opportunities for all. Housing Affordability Institute produces research, white papers and commentary on homeownership and the cost drivers behind our nation’s housing affordability challenges. Learn more at HousingAffordabilityInstitute.org.