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Chicago New Home Construction on the Rise in June

July 30, 2012

Stock photoAccording to figures from HUD and the U.S. Census Bureau, nationwide housing production rose by 6.9 percent to a seasonally adjusted annual rate of 760,000 units in June. This is the fastest pace of new-home construction for Chicago real estate and the nation since October of 2008.

“This good report is in keeping with the results of our latest builder confidence survey, in which many of our members said that they are seeing an influx of more serious buyers to the new-homes market this summer,” observed Barry Rutenberg, chairman of the National Association of Home Builders (NAHB) and a home builder from Gainesville, Fla. “What’s especially encouraging is that, as consumers realize the advantages of purchasing a newly built home while prices and interest rates are so favorable, builders are able to put more crews back to work on construction sites across the country. This in turn is helping spur local economic growth, and policymakers need to be very careful to not take any steps that would derail the beginnings of such a positive trend at this crucial time.”

For a fourth consecutive month, single-family housing starts rose to a seasonally adjusted annual rate of 539,000 units in June, their fastest pace since April of 2010. Additionally, multifamily starts rose 12.8 percent to 221,000 units.

Although declines were caused by monthly volatility on the multifamily side, regionally combined single-and multi-family housing starts rose 22.2 percent in the northeast and 36.9 percent in the west, but fell back 7.3 percent in the midwest and 4.2 percent in the south in June.

In addition, issuance of new building permits fell 3.7 percent to a seasonally adjusted annual rate of 755,000 units in June following a large increase in the previous month. While single-family permitting posted a marginal, 0.6 percent gain to 493,000 units, multifamily permitting fell back 10.9 percent to 262,000 units from an above-trend pace in the previous month.

Regionally, permit issuance rose 2.9 percent in the west and held unchanged in the northeast, but retreated 0.8 percent in the midwest and 8 percent in the south in June.

About The Author

Read All Stories By Brittany Henderson

Brittany Henderson is currently the salon coordinator at Accent On Hair, Inc. in Augusta. Accent On Hair has been in business for 30 years! In the summer of 2012, she was a public relations intern at Marketing RELEVANCE. She writes news releases and blog posts about everything real estate.

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