Why things look good for the housing market right now

New figures indicate strengthening housing market

TRD NEW YORK /
Dec.December 17, 2019 03:15 PM
Housing starts exceeded estimates in November (Credit: iStock)

Housing starts exceeded estimates in November (Credit: iStock)

The year is rounding out on a strong note for the construction industry.

As homebuilder sentiment hits a 20-year high, new government data shows that privately owned housing starts climbed 3.2 percent in November to a seasonally adjusted annual rate of 1.37 million — up from 1.2 million in November 2008.

Building permits in November hit a seasonally adjusted annual rate of 1.48 million, a 1.4 percent increase on the revised October rate, and the highest rate since 2007.

The figures come amid low mortgage rates, job growth and bolstered consumer confidence, Bloomberg reports.

Single‐family housing starts, the biggest sector of the market, were at a rate of 938,000 in November, 2.4 percent above the revised October figure of 916,000. It’s the highest level since January.

Housing starts ticked up in the West and Northeast, but dropped in the Midwest and South. The multifamily segment also rose 4.9 percent to 427,000 units last month, according to the survey.

The overall industry, which accounts for about 3 percent of the economy, is still limited due to supply-side constraints like labor and land availability, according to the survey. Plus, mortgage rates have increased in recent weeks, with the 30-year fixed-rate mortgage rising to 3.73 from 3.49 percent in early September.

The report for December is due to be released in January 2020. [Bloomberg]Sylvia Varnham O’Regan


Related Articles

arrow_forward_ios
Melanie La Rocca, Commissioner of the New York City Department of Buildings

City may allow other types of construction

(Illustration by Sebastien Thibault)

Pension fund money is getting tangled in some controversial housing deals

Washington State Governor Jay Inslee (Credit: John Moore/Getty Images)

The end of Seattle’s construction boom

New York Governor Andrew Cuomo (Credit: Drew Angerer/Getty Images, and iStock)

New York halts most construction

Construction workers in New York City on March 26, 2020 (Credit: Eduardo Munoz Alvarez/Getty Images)

Minority, women-owned construction firms struggle to pay employees, face layoffs: survey

Governor Andrew Cuomo (Photo by Eduardo Munoz Alvarez/Getty Images)

State mulls changing what construction is considered “essential”

Doug Yearley of Toll Brothers and 2686 Broadway (Credit: Google Maps and Toll Brothers)

Who’s still filing permit applications? Toll Brothers, for one

Skanska temporarily halted construction at LaGuardia Airport’s Terminal B and Moynihan Train Hall due to workers with Covid-19 (Credit: LaGuardia B and Anuja Shakya)

Two construction sites shut down as workers get Covid-19

arrow_forward_ios
Loading...