Jul
21

Good Housing Starts = Better Future

July 21, 2011

Home builders could be looking at an improved fall season.

Single-family housing starts rose 9.4 percent in June to the best pace since last November, and multifamily starts increased an incredible 30.4 percent last month to their best pace since January.

Together, nationwide housing starts rose 14.6 percent in June, according to the Commerce Department. That is the best pace of new housing production since the beginning of the year.

plans and tools“Today’s numbers are an encouraging sign that builders are responding to improving consumer interest in new homes and apartments by gradually replenishing their extremely thin inventories in places where demand is evident,” said Bob Nielsen, National Association of Home Builders chairman.

“That said, the lack of access to construction credit remains an impediment to starting new projects and getting building crews back to work in markets that are improving.”

Every region of the country posted an increase in housing starts for June:

*Midwest: Up 25.3 percent

*Northeast: Up 35.1 percent

*South: Up 10.6 percent

*West: Up 5.4 percent

The issuance of building permits is another indicator that the fall season could be prosperous. Overall permits in June rose 2.5 percent to 624,000 units; the highest level since last December.

The Northeast region was the only part of the country to report a 10 percent decline in permits for June. The Midwest registered a 5.2 percent hike, the South a 5.5 percent gain and the West a 1.4 percent increase.

“The latest housing production figures show broad-based gains on both the single-family side and in multifamily apartment construction, where we know that demand has been increasing due to the influx of renters in the market,” said NAHB Chief Economist David Crowe.

“Going forward, we expect to see a gradual upward trend in new-home production through the end of this year as consumers begin taking advantage of the buyers’ market, though not without some bumps along the way.”

We expect nothing less.

Categories: Economy

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Tracey

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[...] we discussed positive news involving the new-home market. Now we have the statistics on U.S. existing-home sales, which fell last month, though not in every [...]

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