In a significant turnaround for the US housing market, housing starts increased by an impressive 4.6% in June 2025, according to the latest data updated on July 18, 2025. This follows a concerning drop of 9.8% in May, highlighting a month-over-month rebound in residential construction activity.
The positive shift is attributed to several factors, including a stabilization in raw material costs and a slight uptick in housing demand, driven by improved economic sentiment and easing supply chain bottlenecks. This newfound momentum comes as a welcome relief for stakeholders and indicates a potential recovery path for the construction sector, which had faced substantial challenges in the previous months.
Experts are cautiously optimistic about this growth, suggesting that if the current trend continues, it could signal a more sustained revival of the housing market. However, they also emphasize the importance of monitoring upcoming reports to better understand the potential implications for the broader economy and to confirm whether this increase marks the start of a longer-term recovery trend.