• Prior month housing starts 1.177 million revised to 1.199 million.
• Prior month building permits 1.410 million.
• Housing starts for the month of June 1.427 million versus 1.310 million estimate
• Housing starts percentage change +19.0% versus -15.2% last month
• Building permits for the month of June 1.367 million versus 1.400 million estimate
• Building permits percentage change -3.0% versus -0.9% last month

Details of Housing Completions:

• Housing completions (June): 1.392 million annualized, +3.3% vs. revised May (1.347 million).
• Completions were +1.5% compared with June 2025 (1.372 million).
• Single-family completions: 964,000 annualized, +6.6% from the revised May pace of 904,000.
• Completions of buildings with five units or more: 413,000 annualized.
• Overall, June completions improved on both a monthly and yearly basis, led by a solid increase in single-family homes.

Full report CLICK HERE.

Housing remains a dilemma for the Fed.  The affordability is too high.  For homeowners who refinanced during the Covid crisis at rates near 2%,  people do not want to sell. and give up the near free money. Also, the supply remains too low. The increase in housing starts is a positive but looking at the chart, the housing start remain in the range.  

Another factor weighing on housing inventory in some regions is the large unrealized capital gains many baby boomers have accumulated in their homes. For many, there is a strong financial incentive to remain in their home rather than sell it. Upon death, heirs generally receive a step-up in cost basis to the home’s fair market value at the date of death, allowing them to avoid capital gains taxes on decades of appreciation if they choose to sell.

For someone who purchased a “forever home” in 1985 and has accumulated roughly $1 million in appreciation, the tax savings can be substantial compared with selling during their lifetime. In addition, selling a home with a large taxable capital gain can increase modified adjusted gross income (MAGI), potentially triggering higher Medicare IRMAA premiums. Together, these tax considerations may discourage some homeowners from selling, further limiting the supply of existing homes on the market.   

So more supply helps, and dying helps (but no one talks about it).  Maybe taking away the step-up in cost basis upon death would encourage more selling.  The government would want people to sell and collect the capital gains tax. 

FYI

• Youngest Boomers: 62 years old (born in 1964)
• Oldest Boomers: 80 years old (born in 1946)

Approximate age distribution:

• 62–65 years old (born 1961–1964): ~20–25%
• 66–70 years old (born 1956–1960): ~25–30%
• 71–75 years old (born 1951–1955): ~25–30%
• 76–80 years old (born 1946–1950): ~20–25%

• The Baby Boomer generation originally consisted of about 76 million Americans.
• An estimated 65–70 million Baby Boomers are still living in the U.S.
• Many Boomers own homes purchased decades ago, often with significant unrealized capital gains.

The Average life expectancy (both sexes):79.0 years

• Men:76.5 years
• Women:81.4 years

I am sure someone is doing the numbers.  

This article was written by Greg Michalowski at investinglive.com.