Oct
02

More Positive News for Chicago New Homes Construction

October 02, 2012

Construction spending in August dropped by more than it has in over a year, but that doesn’t mean the national and Chicago new homes markets aren’t improving.

According to the Commerce Department, construction spending in the U.S. fell for the second straight month in August to a seasonally adjusted annual rate of $837.1 billion.

chicago new homes constructionThe 0.6 percent drop from July 2012 was the biggest decline since July of 2011.

But all is not as it seems. While construction on non-residential projects in August fell 1.7 percent to an annual rate of $288.7 billion, the lowest since December 2011, spending on new-home construction increased 0.9 percent to $273.5 billion, the most since January 2009.

It seems the new-homes market is on the road to recovery.

Last week, the Commerce Department reported that housing starts rose 2.3 percent, fueled by a 20.7 percent surge in Chicago’s Midwest region. In addition, single-family housing starts improved in every region of the country for a combined 5.5 percent.

“Builders across the country have been reporting noticeable improvement in the number of serious buyers who are in the market for a new home,” said Barry Rutenberg, chairman of the National Association of Home Builders. “This is translating to some welcome gains in construction activity.”

And construction activity is just what the economy needs. Rutenberg said for every 100 new single-family homes that are built, 300 new jobs are created.

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