ConDig (20-Jul-17).  Construction of new homes in the US picked back up in June, rising 8.3% from the month prior to a seasonally adjusted annual rate of 1.215 million compared with May’s upward-revised total of 1.122 million units.

Building permits, which are a sign of future activity, were also 7.4% to a seasonally adjusted annual rate of 1.25 million units compared with 1.168 million in May.

Single-family production jumped up 6.3% to a seasonally adjusted annual rate of 849,000 units from a below-trend May reading of 799,000, while multifamily starts increased 13.3% to 366,000. Single-family production was at its second-highest rate this year.

“We are seeing housing production return to trend after a softer reading last month,” said National Association of Home Builders (NAHB) chief economist Robert Dietz.

“The gradual growth in single-family starts in 2017 is in line with our forecast, and we should see this sector continue to strengthen throughout the year as consumers show interest in the housing market.”

But NAHB officials continue to warn that home builders are still facing lot and labor shortages, along with rises in building material costs, which is hampering progress.

Part of the increase in material costs follows a ruling last month by the US Department of Commerce to impose further punitive tariffs on imports of softwood lumber from Canada.

Preliminary anti-dumping duties of as much as 7.7% are now set to be levied on Canadian producers, which has fueled shortages and price hikes.