The surge reflects growing demand for rentals as high mortgage rates and home prices push more buyers to delay purchases
US housing construction surged in July, climbing 12.9% from last year, far exceeding the 2.8% gain economists expected, Census Bureau data showed.
The jump came largely from multifamily projects, with construction of buildings with five units or more up 27.4%. Single-family starts rose 7.8%, though overall they remain weak.
The surge reflects growing demand for rentals as high mortgage rates and home prices push more buyers to delay purchases. Builders are responding by focusing on apartments, with multifamily starts up 18.1% so far this year.
Challenges remain
Home-builder confidence is near decade lows, permits for new projects fell 5.7% in July, and tariffs have raised construction costs.
Builders also worry about labor shortages if immigration crackdowns intensify.