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Instant Reaction: July Housing Starts

Below is NAR Chief Economist Lawrence Yun’s reaction to this morning’s U.S. Commerce report on July housing starts:

“The housing shortage in America will intensify if new construction remains as lackluster as it was in July. The softening multifamily housing starts brought down the overall new housing unit addition to the second lowest monthly activity this year. Moreover, the latest 15% drop in multifamily housing starts and 0.5% drop in single family housing starts will hold back economic growth potential. Because of this continued shortage, expect rents and home prices to rise by at least twice as fast as the broad consumer price index.”