Nationwide housing starts rose 8.3 percent in June to a seasonally adjusted annual rate of 1.22 million units, according to newly released data from the U.S. Department of Housing and Urban Development and the Commerce Department.

Single-family production increased 6.3 percent to a seasonally adjusted annual rate of 849,000 units from a below-trend May reading of 799,000, while multifamily starts rose 13.3 percent to 366,000. Single-family production was at its second-highest rate this year.

“We are encouraged by the June production report, but our builders continue to express concerns about lot and labor shortages, and building materials price increases,” said Granger MacDonald, chair of the National Association of Home Builders (NAHB) and a home builder and developer from Kerrville, Texas.

“We are seeing housing production return to trend after a softer reading last month,” said NAHB chief economist Robert Dietz. “The gradual growth in single-family starts in 2017 is in line with our forecast, and we should see this sector continue to strengthen throughout the year as consumers show interest in the housing market.”

Regionally in June, combined single- and multifamily housing production rose 83.7 percent in the Northeast, 22 percent in the Midwest, and 1.6 percent in the West. Starts fell 3.8 percent in the South.

Overall permit issuance in June was up 7.4 percent to a seasonally adjusted annual rate of 1.25 million units. Single-family permits increased 4.1 percent to 811,000 units while multifamily permits jumped 13.9 percent to 443,000.

Regionally, overall permits rose 19.7 percent in the Midwest, 9.9 percent in the West, and 6.9 percent in the South. Permits fell 13.9 percent in the Northeast.

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