US housing starts rise to 9-year high in October

Jump from previous month was quickest since 1982

Nov.November 17, 2016 01:30 PM

New-home construction climbed to a nine-year high last month on the back of a big jump in apartment developments and strong growth in single-family housing.

Residential starts jumped 25.5 percent in October to 1.32 million seasonally adjusted units, the most new construction starts since August 2007, according to a U.S. Commerce Department report released Thursday.

The increase from September was the largest on record since July 1982, Bloomberg News reported. Multifamily building construction spiked an astounding 68.8 percent. Single-family homebuilding rose 10.7 percent.

Job growth and stronger finances have been driving demand, but increases in borrowing costs could discourage first-time buyers.

“Homebuilding is in a steady recovery,” said Richard Moody, chief economist at Regions Financial Corp. in Alabama. “The fundamentals for demand are in good shape” although “higher mortgage rates could be a potential headwind if we see further gains in rates.”

Investors are expecting quicker expansion and inflation from President-elect Donald Trump. That’s pushed the yield on the U.S. 10-year note to jump in the past week, and indicator of changes in mortgage rates.

In areas of New York City, particularly Downtown Brooklyn, a glut of new rental projects is expected to come online. [Bloomberg]Rich Bockmann

Related Articles

From left: 55 East 74th Street, 9 East 82nd Street, 1 Central Park South, 78 Irving Place with Adam Neumann and 111 West 57th Street (Credit: StreetEasy, Wikipedia, Getty Images)

Adam Neumann’s triplex, Russians’ Plaza pad were priciest homes listed last week

3 East 69th Street and 252 East 57th Street 

With asking prices in freefall, luxury market sees strong week

Keller Williams CEO Gary Keller

Keller Williams will cut off agents who leave

Wall Street bonus season is the stuff home sellers’ dreams, as they picture eager buyers armed with hefty bonus checks and willing to pay top price. But in a buyer’s market that vision may be more like a mirage (Credit: iStock)

Here’s what Wall Street bonus season means for real estate this year

Adam Neumann and 78 Irving Place (Credit: Getty Images and StreetEasy)

Adam Neumann is asking $37M for Gramercy Park triplex

(Credit: iStock)

Residential rents continue upward march in Manhattan, Brooklyn and Queens

Redfin's Glenn Kelman (Credit: iStock)

“It’s on like Donkey Kong”: Redfin scrambling to keep up with iBuyer demand

Don Lemon and Tim Malone with their apartment at 2280 Frederick Douglass Boulevard 

CNN’s Don Lemon lists Harlem condo with fiancé broker Tim Malone