Good News for Housing in JuneJuly 25th, 2011 | Category: Industry News
Nationwide housing starts rose 14.6 percent to a seasonally adjusted annual rate of 629,000 units in June, according to figures released by the U.S. Commerce Department this week. This was the best pace of housing production since the beginning of the year, and was attributable to significant gains registered in both the single-family and multifamily segments as well as every region of the country.
“The latest housing production figures show broad-based gains on both the single-family side and in multi-family apartment construction, where we know that demand has been increasing due to the influx of renters in the market,” says NAHB chief economist David Crowe. “Going forward, we expect to see a gradual upward trend in new-home production through the end of this year as consumers begin taking advantage of the buyers’ market, though not without some bumps along the way.”
Single-family housing starts posted a 9.4 percent gain to a seasonally adjusted annual rate of 453,000 units in June, their best pace since November of 2010. Meanwhile, multi-family starts, which tend to display greater volatility on a month-to-month basis, gained a dramatic 30.4 percent to a rate of 176,000 units–their best pace since January.
Starts activity improved across every region of the country in June, with the Northeast posting a 35.1 percent gain, the Midwest posting a 25.3 percent gain, the South posting a 10.6 percent gain, and the West posting a 5.4 percent gain.
Issuance of building permits also improved in June. Overall permits posted a 2.5 percent gain to 624,000 units, their highest level since December of 2010.