Housing starts jump as homebuilder confidence rises
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.