Friday, October 17, 2014

Housing Starts Rebound Above 1 Million Unit Pace in September

Housing starts rebounded in September, to an annualized rate of 1.017 million units. September’s pace grew 6.3% from a slight downwardly revised August rate. September’s growth was due to both single family and multi-family construction improvements. The pace of new construction is now 17.8% higher than a year ago.

Of the four regions, only the South did not contribute to the overall gain. Multifamily starts jumped 16.7% in September, bringing the annual pace to 371,000 units. It is important to note that multifamily starts declined 28.7% in August, so September’s gain has yet to fully offset the decline from the month prior. Single family starts also improved by 1.1% to an annual rate of 646,000 units.

Permit issuance was also stronger in September. Overall housing permits increased 1.5%, driven by a 4.8% monthly growth in multi-family permits. Single-family permit issuance declined.

Despite the positive September report, housing starts remain well below the long-run average of 1.5 million units.

Read the Census release.

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