Housing starts are up 6.8 percent, according to the May National Association of Home Builders Housing Starts Summary. Starts were bolstered by a large uptick in multi-unit construction and backed by an ever-growing demand. Single-family starts remained steady with 599,000 units in May, while production of apartments and other multi-family dwellings rose 21.6 percent for a combined total of 914,000 units.
While single-family home starts didn’t m
ake a huge leap forward, the volume of permits requested by builders continues to demonstrate U.S. consumers’ desire to build and own new homes. The rainy season might also be a contributing factor in the lack of home starts. NAHB Chief Economist David Crowe mentioned weather might be slowing progress on the, however the strength of permits being issued and pulled for future use signals continued recovery in the housing market.
A 10 percent drop in multi-unit permits caused a drop in overall new permit activity of 3.1 percent. In May 974,000 starts were recorded, according to the May Housing Starts Summary. Single-family permits, however, had their strongest showing in five years with an increase of 1.3 percent, to 622,000 units.
The South and the West led the way in starts, with increases of 17.8 percent and 5.7 percent, respectively. Meanwhile the Housing Starts Summary reported a decline of 13.7 percent in the Midwest followed by the Northeast’s 9 percent dip in production.
Although regionally there were construction declines; inclement weather may have impacted new starts growth. The overall nationwide statistics in the Housing Starts Summary showed positive forward movement. The existing home inventory remains low in most of the country; therefore homebuyers continue to look for builders to fulfill their housing needs. Current trends indicate that many buyers prefer the advantages of new home construction.
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Sources:
1) http://www.nahb.org/news_details.aspx?newsID=16344
2) http://www.nahb.org/news_details.aspx?sectionID=122&newsID=16341