Housing Starts, Permits Surged Last Month
Nationwide production and permitting of new homes rose sharply in September to their highest levels in more than four years, according to government figures released on Oct. 17. Moreover, the gains were registered across both the single-family and multifamily sectors, as well as most parts of the country. While starts rose 15% to a seasonally adjusted annual rate of 872,000 units, permits rose 11.6% to 894,000 units. Single-family starts registered an 11% gain to 603,000 units (their best pace since August 2008) and multifamily starts registered a 25.1% gain to 269,000 units (their best pace since September of 2008).
Meanwhile, single-family permits rose 6.7% to 545,000 units and multifamily permits rose 20.3% to 349,000 units -- the highest point for both since July 2008. Regionally, starts gained 6.7% in the Midwest, 19.9% in the South and 20.1% in the West, but fell 5.1% in the Northeast, while permits gained across the board with a 6.0% increase in the Northeast, a 19.5% increase in the Midwest, a 10.5% increase in the South and an 11.3% increase in the West in September. Commenting on the latest numbers, NAHB Chief Economist David Crowe said they "correspond with the significant gains we've seen in builder confidence over the past year, and confirm our view that a housing recovery is solidly underway in a growing number of markets nationwide." However, he also cautioned that "We are now almost at the half-way mark in terms of what would be considered a normal amount of new-home construction in a healthy economy, and we need to see consistent improvement like this over an extended period to get back to where the market should be in terms of generating jobs and economic growth."
Builder Confidence Edged Slightly Higher in October
- Tags: ADI News
- Joanne Loftus