The latest data from the U.S. Census Bureau paints a clear picture: new single-family home construction is cooling, even as multifamily projects continue to surge. For buyers, builders, and investors, this shift carries big implications.
While overall housing starts rose 4.6% in June, that increase was powered by a spike in apartment and multifamily construction. Meanwhile, single-family housing starts dropped 4.6%, and permits fell 3.7%, indicating that builders are pumping the brakes on new home development.
At the same time, completions for single-family homes dropped by 12.5%, adding to concerns that supply may tighten even further in the coming months.
Several economic forces are weighing heavily on homebuilders:
High interest rates are making construction loans more expensive.
Material and labor costs remain elevated post-pandemic.
Inventory pressure is pushing builders to offer discounts and incentives—over 60% are now offering some kind of deal to buyers.
Buyer affordability has been squeezed, with many opting for rentals or existing homes.
According to the National Association of Home Builders, builder sentiment ticked up slightly in July but remains historically low. Many builders report weak foot traffic and limited short-term optimism for new sales.
If you’re a first-time buyer or an investor looking to step into new construction, now could be your moment. With price cuts, builder incentives, and a window of opportunity before rates move again, there’s room to negotiate—but choices may be more limited as fewer single-family homes hit the market.
Meanwhile, mortgage application activity is up 8.5% year-over-year, showing there’s still demand for homes—especially when paired with smart financing options.
At ValGarrowLoans, I help buyers and investors find financing solutions that make sense in any market. Whether you're considering a new build, a resale, or a fixer-upper, we analyze your goals and connect you to the right loan product for your needs.
As builders scale back on single-family starts, securing your financing early—and working with a trusted loan officer—can be the edge you need.
📲 Reach out today for a free consultation and let's turn this market shift into your opportunity!
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