Housing starts and permits post gains in September

New York /
Oct.October 17, 2012 02:00 PM

The production and permitting of new U.S. homes — single- and multi-family — spiked in September, reaching their highest levels since July 2008, according to Census Bureau and U.S. Department of Housing and Urban Development data released today. June saw a similar jump.

Total housing starts in September came in at a seasonally adjusted annual rate of 872,000, which marks a 15 percent month-over-month increase and a 34.8 percent year-over-year jump. Separated by type, single-family housing starts came in at a rate of 603,000, up 11 percent month-over-month and 42.9 percent year-over-year. Structures with five units or more posted a 25 percent month-over-month increase to 260,000 units, which is also an 18.7 percent year-over-year gain.

“Yet, while September’s surge in activity is certainly encouraging, we need to remember that we still have a long way to go back to a fully functioning market,” said National Association of Home Builders Chairman Barry Rutenberg in a separate release, “and in order to get there, significant challenges must still be addressed in terms of credit availability and appraisal issues, as well as the increasing cost of building homes due to rising materials prices and a declining inventory of buildable lots.”

NAHB’s Chief Economist David Crowe said today’s numbers confirm that a housing recovery is underway in a greater number of U.S. markets.

“That said, 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,” he said, “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.”

Combined housing starts rose month-over-month in all regions of the country minus one: While the Northeast fell 5.1 percent, the Midwest, South and West gained a respective 6.7 percent, 19.9 percent and 20.1 percent.

Meanwhile, the issuance of building permits — an indicator of future building activity — increased last month in both the single- and multi-family sectors. Single-family permits posted a 6.7 percent month-over-month climb with a rate of 545,000 — multi-family came in with a seasonally adjusted rate of 323,000, marking a 22.8 percent month-over-month gain. — Zachary Kussin


Related Articles

arrow_forward_ios
NYCHA Chairman Gregory Russ and NYCHA federal monitor Bart Schwartz. (NYCHA Monitor)
NYCHA overhauling management system
NYCHA overhauling management system
President Joe Biden (iStock, Getty/Photo Illustration by Kevin Rebong)
Biden bans LGBT-based housing discrimination
Biden bans LGBT-based housing discrimination
Housing Expert Shaun Donovan on his Bid for NYC Mayor
Shaun Donovan can do housing. Can he do politics?
Shaun Donovan can do housing. Can he do politics?
Marcia Fudge (Getty)
Joe Biden taps Marcia Fudge, Ohio congresswoman, as HUD secretary
Joe Biden taps Marcia Fudge, Ohio congresswoman, as HUD secretary
Clockwise from top left: California Rep. Karen Bass; Atlanta Mayor Keisha Lance Bottoms;  Former Jacksonville Mayor Alvin Brown, National Low Income Housing Coalition president and CEO Diane Yentel; and Local Initiatives Support Corporation president and CEO Maurice Jones (Getty)
Five candidates emerge for Biden’s HUD secretary
Five candidates emerge for Biden’s HUD secretary
Ben Carson (Getty)
HUD Secretary Carson tests positive for Covid
HUD Secretary Carson tests positive for Covid
Housing and Urban Development secretary Ben Carson (Getty; iStock)
CoreLogic’s screening algorithm may have discriminated against renters: lawsuit
CoreLogic’s screening algorithm may have discriminated against renters: lawsuit
HUD's Lynne Patton and of Frederick Douglass Houses resident Claudia Perez (Getty; RNC)
NYCHA tenants say they were duped into RNC video appearance
NYCHA tenants say they were duped into RNC video appearance
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...