Housing starts jump as homebuilder confidence rises

1.4M single-family homes under construction in September

National /
Oct.October 20, 2020 04:00 PM
Housing starts and completions increased sharply in September 2020 in response to fierce demand to buy homes. (iStock)
Housing starts and completions increased sharply in September 2020 in response to fierce demand to buy homes. (iStock)

The number of homes under construction surged across the U.S. last month as homebuilder confidence kept rising.

In September, housing starts stood at 1.4 million, seasonally adjusted, according to the U.S. Census Bureau’s monthly report on residential construction. That’s a jump of about 11 percent year over year. The number is also up about 2 percent from August levels.

Housing starts fell in August by 5 percent, or 76,000 units, compared to July.

September also saw 1.5 million building permits issued for new housing units — seasonally adjusted — which was an increase of 100,000 permits year over year. It was also an increase of 77,000 units from August.

The number of houses completed last month also rose, 25 percent, year over year. In September, 1.4 million units of housing were finished compared to 1.1 million in September 2019, according to the report. September completions also exceeded August completion estimates by about 187,000 homes.

The increases in new residential construction comes as the supply of homes for sale hit a 40-year low in July and prices jumped.

With mortgage rates low, many homebuyers are forging ahead with plans despite those rising prices and heightened competition. Would-be buyers with poor credit, however, are increasingly finding themselves shut out of purchase financing.






    Related Articles

    arrow_forward_ios
    Renderings of One Beverly Hills and Beny Alagem. (One Beverly Hills, Getty)
    Beny Alagem’s $2B Beverly Hills project gets go-ahead
    Beny Alagem’s $2B Beverly Hills project gets go-ahead
    Michael Nourmand (Facebook via Nourmand & Associates)
    Compass tries to recruit brokerage owner Michael Nourmand
    Compass tries to recruit brokerage owner Michael Nourmand
    Joel Singer (California Association of Realtos)
    California Association of Realtors CEO to retire
    California Association of Realtors CEO to retire
    PocketList shuttered after having formally launched in L.A. last July. (Getty, PocketList)
    Spencer Rascoff-backed rental listing platform shuts down
    Spencer Rascoff-backed rental listing platform shuts down
    Blackstone CEO Stephen Schwarzman (Getty, iStock)
    Blackstone buys San Diego apartment complexes in $1B deal
    Blackstone buys San Diego apartment complexes in $1B deal
    10745 W. Burbank Boulevard in North Hollywood (Google Maps)
    Developer eyes apartment complex in North Hollywood
    Developer eyes apartment complex in North Hollywood
    Rendering's of Byron Allen's future mansion. (Getty, Landry Design Group)
    Media mogul Byron Allen is building a Beverly Hills megamansion
    Media mogul Byron Allen is building a Beverly Hills megamansion
    Relevant Group’s Grant King and Richard Heyman with the Thompson and Tommie hotels (Relevant Group)
    Relevant Group lands “rescue” financing for 2 boutique hotel projects
    Relevant Group lands “rescue” financing for 2 boutique hotel projects
    arrow_forward_ios

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

    Loading...