July housing starts data has come in, and it appears that construction has slowed. However, the data on housing starts is mixed. Even though overall construction fell, the largest drops were in multifamily structures; there was an increase in single family structures.

This news is providing a degree of comfort to those watching the economy. Indeed, many cite the fact that single family dwellings are on the rise again as a positive sign. It seems to indicate that people are buying homes again, and that demand for multifamily dwellings, used as rentals, is dropping. Some claim that this is an indication that the housing market is stabilizing.

Builders are still concerned, though, about starting new projects in some places, so housing starts are still down on the year. But there are some that feel hopeful that things are starting to turn around — or at least that they have stopped getting worse.