Surprising Surge in US Home Construction and Housing Starts; Canadian Housing Bubbles Show Signs of Decline
US home builders increased construction in July, with housing starts rising 3.9% from June, beating market expectations. Single-family housing starts, which account for most of the construction, rose 6.7% in July. The increase in new residential construction reflects a housing market where buyers are seeking affordable homes due to high prices and low inventory in the existing home market. However, completed homes declined 11.8% from June, and building permits were essentially flat. Builder sentiment dropped for the first time this year in August due to higher mortgage rates, high construction costs, and material shortages. Despite challenges, demand for new construction remains supported by a lack of resale inventory.