The number of new housing starts in the United States rebounded in June, but data on single-family homes show that the market remains weak.

Driven by strong demand for multi-family residential construction, new home construction in the United States rebounded in June. However, the single-family housing market showed weakness, indicating that the issues of high inventory and limited affordability remain ongoing. According to government data released on Friday, new housing starts in the United States increased by 4.6% last month, reaching an annualized rate of 1.32 million units, rebounding after a nearly 10% decline in May. Ben Ayers, senior economist at Nationwide, said in an interview earlier this week that by 2026, some of the unfavorable factors faced by builders may disappear, including mortgage rates and the uncertainty of President Trump's trade policies. However, he noted that the outlook for the second half of 2025 is not optimistic at the moment. Building permits for single-family homes, which can reflect future construction activity, have decreased for the fourth consecutive month, reaching the lowest point in over two years. Additionally, government data also shows a continued decline in the number of single-family homes under construction for the past three years.