Housing starts climbed 0.2 percent to a seasonally adjusted annual rate of 1.206 million units in July, according to new data from the U.S. Department of Housing and Urban Development and the Commerce Department. That’s the highest level since October 2007.

Single-family starts rose 12.8 percent to a seasonally adjusted annual rate of 782,000 units after June’s reading was revised upward, while multifamily production fell 17 percent to 424,000 units.

“Our builders are reporting more confidence in the market, and are stepping up production of single-family homes as a result,” said NAHB chairman Tom Woods. “However, builders are still reporting problems accessing land and labor.”

“This month’s drop in the more volatile multifamily side is a return to trend after an unusually high June,” said NAHB chief economist David Crowe. “While multifamily production has fully recovered from the downturn, single-family starts are improving at a slow and sometimes intermittent rate as consumer confidence gradually rebounds. Continued job and economic growth will keep single-family housing moving forward.”

Regionally in July, combined single- and multifamily starts rose by 20.1 percent in the Midwest and 7.7 percent in the South. The Northeast and West saw losses of 27.5 percent and 3.1 percent, respectively.

 

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