HY Homebuilders, Building Materials: Starts Turn Positive, But Recovery Remains Selective

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HY Homebuilders, Building Materials: Starts Turn Positive, But Recovery Remains Selective

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HY Homebuilders, Building Materials

Starts Turn Positive, But Recovery

Remains Selective

Industry Overview

June 2026 Construction Trends 24 July 2026

June 2026 residential construction trends based on The US Census’ Survey of High Yield Credit

Construction dated July 17, 2026, and other sources. United States

Homebuilders, Building Materials,

Housing Stabilizing, Multifamily Driving Recovery Rentals

Total housing starts turned positive in 1H26 (+0.5% y/y), driven by strong MF growth James Kayler, CFA

(+17%), while SF starts remained weak (-5.3%). Permitting trends were similarly mixed, Research Analyst

BofAS

with total permits down 2.2% y/y in 1H26 as SF permits fell 4.7%, partially offset by a +1 646 855 9223

4.5% increase in MF permits. james.f.kayler@bofa.com

Drew Thompson

Leading Metrics Improving ResearchBofAS Analyst

Construction pipeline metrics improved through 2Q26, with units under construction +1 646 855 8205

andrew.thompson2@bofa.com

improving slightly (-6.4% y/y in June vs. -9.8% in January), indicating a slowing pace of

backlog runoff. MF under-construction inventories corrected faster than SF, with the

MF-SF pipeline gap narrowing from 108k units to 72k units. While completions remained

weak (-9.5% y/y in 1H26), trends improved late in the quarter, led by a rebound in SF

completions (+6.5% y/y in June). SF: Single-family

Affordability Headwinds Intensify MF: Multifamily

NAR’s Affordability Index declined to 102.3 in June (vs. 105.1 in May), marking a

continued erosion in homebuyer purchasing power as rising home prices and higher

mortgage rates offset income gains. The median home price increased +2.3% m/m to