Single-family housing starts continued to grow in September, with overall housing production increasing 1.9% to a seasonally adjusted annual rate of 1.42 million units, according to the National Association of Home Builders.
Within the overall number of 1.42 million, single-family starts increased 8.5 % to a seasonally adjusted annual rate of 1.11 million. This is the highest pace for single-family starts since June 2007. The multifamily sector posted a 16.3% decrease to a 307,000 pace.
“The housing market remains a bright spot in the US economy, and this is reflected in today’s positive housing starts report,” said Chuck Fowke, NAHB chairman. “Builder confidence is at an all-time high as buyer traffic is strong – another sign that housing is helping to lift the economy.”
“Home sales have exceeded for-sale home construction recently, which means additional home-building in the near term,” said Robert Dietz, NAHB chief economist. “Demand is being supported by low interest rates, a suburban shift in demand and demographic tailwinds. However, headwinds due to limited building material availability is slowing some construction activity despite strong demand, with authorized but not started single-family homes up 22.4% compared to a year ago.”
On a regional and year-to-date basis, combined single- and multifamily starts are 11% higher in the Midwest, 5.7% higher in the South, 4.5% higher in the West and 1.4% lower in the Northeast. Overall permits increased 5.2% to an annual rate of 1.55 million units in September. Single-family permits rose 7.8% to a 1.12-million-unit rate.