Single-Family Building at Highest Level in Year
Article by Daily Real Estate News | November 20, 2014
Single-family housing starts climbed 4.2 percent month-over-month in October to 696,000 units, reaching the highest level since November 2013, according to the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
“The rise in single-family starts is more proof that the economy is firming and consumer confidence is growing,” says Kevin Kelly, chairman of the National Association of Home Builders. “We expect continued upward momentum into next year.”
The issuance of building permits — a gauge for future building activity — rose 4.8 percent in October to an annual rate of 1.08 million units. Single-family permits rose 1.4 percent, while multifamily permits increased 10 percent. The largest increases in permits were in the West, which saw a 21.6 percent gain, followed by the South, with an 8.8 percent increase. The Northeast and Midwest both posted decreases in permit issuance in October, at 21.5 percent and 11.4 percent, respectively.
While single-family homebuilding is on the mend in most parts of the country, the volatile multifamily sector hit a snag in building in October, the Census data showed.
Overall, homebuilding in both the single-family and multifamily sectors was down 2.8 percent in October due to a decrease last month in multifamily construction. Multifamily starts posted a 15.4 percent decrease in October, bringing the sector’s annual pace of production to 313,000.
Still, “on the multifamily side, production is stabilizing above historic levels as demand for rental housing increases,” says NAHB Chief Economist David Crowe.
Source: National Association of Home Builders; Realtor Magazine Online, Daily Real Estate News 112104
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