Housing starts rebounded in June on apartment construction

US housing starts rebounded in June on the strength of multifamily building, while weakness in the larger single-family market pointed to ongoing struggles with bloated inventories and affordability constraints.

New residential construction increased 4.6% to an annualized rate of 1.32 million homes last month, picking up after an almost 10% slide in May, according to government figures released Friday.

READ MORE: June sees uptick in new-home loan demand

While apartment contractors were busier, the overall malaise in new-home construction is a sign builders are slowing their investment as they work to clear inventory that’s ballooned to a more than 17-year high. Developers are now competing with a growing supply of previously owned homes as well, as homeowners have come to terms with…