Fewer new homes were built in June, alluding economists' expectations that more housing could help rebalance the market.

Construction for new homes fell 8.0% month-over-month in June, to an adjusted annual rate of 1.43 million, according to data released Wednesday by the U.S. Census Bureau. Starts for all privately owned homes fell from 1.59 milli💟on in May and were 8.1% lower than they were in June 2022. 

For single-family homes, starts in June were 7.0% lower than in May, ending the month at an annual rate ꦏof 935,000. 

The June estimates come as economists point to new construction as a way of providing more housing amid chronically low inventory across the country. In June, construction fell from a 16% increase the previous month.

"While the decline was less than expected and the housing market is showing signs of stabilizing after taking a hit in 2022, further progress remains limited amid interest rates that are likely to stay elevated for some time," Priscilla Thiagamoorthy, senior economist at BMO Economics wrote in an analysis. 

New building permits, a sign of future construction, also fell in🌱 June. Permits for privately-owned housing starts fell 3.7% over the month, ending June at an annual rate of 1.4 million. The figure was down 15.3% from June 2022. For single-family homes specifically, permits rose 2.2% from May.  

While permits and starts were down in June, housing completions also fell 3.3%. Completions ended June at an annual rate of 1.47 million, down from 1.52 mi𒊎llion in May and 5.5% lower than they were one year ago.

Starts fall across three U.S. regions

Starts ♔fell in every U.S. region except ꧅the West in June. 

In the Northeast, starts fell 11.9% for single-family units but were up 6.1% year-over-year. In the Midwest, single-family starts fell 19.6% and were down 20.7% from one year ago. In the South, starts for single🐻-family homes fell 7.3% over the month and were down the same amount year-over-year. 

In the West, starts were up 4.6% for single-family homes. They dropped 1.9% year-over-year.