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US home construction slips in June, but not in Northeast

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. AP Photo/David Zalubowski, File

WASHINGTON (AP) — US home construction slipped last month as an uptick in the building of single-family homes was offset by a big drop in apartment construction.

The Commerce Department said Wednesday that construction was started at a seasonally adjusted annual rate of 1.25 million in June, down 0.9 percent from 1.27 million in May. Construction of single-family homes rose 3.5 percent, but apartment building skidded 9.4 percent.

Applications for building permits, an indication of future construction, fell 6.1 percent last month to 1.22 million, the lowest since May 2017.

Falling mortgage rates are expected to spur home construction, overriding other concerns such as shortages of building lots and construction workers.

‘‘Still, pullback in building permits in June suggests further weakness could be in the pipeline,’’ Shernette McLeod, economist at TD Economics, said in a research note. ‘‘Rising costs, lack of land, and labor shortages continue to pose challenges to builders, impeding their ability to fully take advantage of lower borrowing rates to construct more in-demand entry-level units.’’

Home construction overall was up 6.2 percent last month from June 2018. Single-family construction slid 0.8 percent, and apartment building jumped 25.3 percent from a year earlier.

Housing starts rose 31.3 percent from May to June in the Northeast and 27.1 percent in the Midwest, but fell 9.2 percent in the South and 4.9 percent in the West.