Trending

Housing starts gain 3.6 percent in October

Nationwide housing starts jumped 3.6 percent last month to a seasonally adjusted rate of 894,000 units, according to U.S. Department of Commerce data released today. October’s numbers represent the fastest pace of new-home construction since July 2008, thanks to increases in the multi-family sector.

The single-family housing sector remained unchanged on a month-to-month basis at 594,000 units, but construction of multi-family units posted an 11.9 percent monthly jump to 300,000. However, permits issued fell 2.7 percent to 866,000 units last month, primarily because permits in the multifamily sector saw a 10.6 percent decline from a September high of 304,000. Single-family permits posted a 2.2 percent month-over-month gain to 562,000 units.

Sign Up for the undefined Newsletter

“Builders are acting to meet rising demand while continuing to exercise caution by pulling a modest increase in the number of single-family permits as the market continues to gradually gain its footing,” said National Association of Home Builders Chairman Barry Rutenberg in a release.

As The Real Deal reported yesterday, builder confidence in the market for newly built, single-family homes posted a gain this month to 46 — the U.S. housing market index’s highest point reached in over six years.

Despite the improvements that show housing is recovering at a slow but steady space, NAHB Chief Economist David Crowe said, “we still have a long way to go to get back to normal production as inaccurate appraisals, tight lending conditions for home buyers and policy uncertainties continue to impede the recovery.”– Zachary Kussin

Recommended For You