June saw a 3% increase in housing starts, although single-family home construction remains at an eight-month low. John Burns Research & Consulting Director of Research, Rick Palacios Jr., joins Wealth! to provide insights into the current housing market construction dynamics.

Palacios highlights a significant downturn in multi-family housing starts, noting a nearly 23% year-over-year decline, a trend he anticipates will persist. Regarding single-family homes, he characterizes the year as one of "haves versus have-nots." Publicly traded homebuilders are thriving in this environment, while private builders struggle to gain traction. According to Palacios, this results in "a pretty flat backdrop for single-family housing starts."

With high interest rates suppressing the housing market, Palacios suggests that a Federal Reserve rate cut would "definitely help" stimulate growth. On the multifamily side, "The storyline coming into the year was... survive until '25," Palacios told Yahoo Finance, adding that such a cut would boost both multi-family and single-family housing starts.

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This post was written by Angel Smith