Single-family starts posted a solid gain in August on robust demand and moderating mortgage rates even as builders continue to grapple with challenges related to lot and labor shortages and elevated prices for many building materials.

Despite high mortgage rates, single-family home construction remained solid across regions, while multifamily construction continued to decline. Second home markets saw strong growth in both single-family and multifamily construction over the past decade.

NAHB Chief Economist Robert Dietz said buyer interest and builder sentiment should improve in the months ahead. 

High interest rates for construction and development loans as well as ongoing challenges regarding labor shortages and higher prices for many building materials continued to slow the building market this summer.

Luxury home values have risen 3.9% year over year, outpacing the 3.2% growth of typical homes.

The company's performance reflected focus on sales initiatives, cost containment, and restructuring actions. 

Existing-home sales fell in June as the median sales price climbed to the highest price ever recorded for the second consecutive month, according to the National Association of Realtors. All four major U.S. regions posted sales declines.

Mortgage rates that averaged 7.06% in May per Freddie Mac, the highest monthly average since last November, put a damper on new home sales last month.

Persistently high mortgage rates are keeping many prospective buyers on the sidelines, and home builders are also dealing with higher rates for construction and development loans, chronic labor shortages and a dearth of buildable lots.