“Housing starts jumped 25% in October to a post-recession high as volatile apartment construction more than reversed a sharp decline and single-family starts surged as well. Construction of homes and apartments rose 25.5 to a seasonally adjusted annual rate of 1.3 million, the Commerce Department said Wednesday. That soundly beat economists’ estimate of 1.16%
Multifamily starts soared t 69% to an annual rate of 454,000 after falling 38% in September.
Single-family starts increased 107% to an annual rate of 869,000, which also marked a post-recession high.
Building permits, an indicator of future starts, edged up to an annual rate of 1.23 million, more than the 1.19 million economists expected….’today’s data reaffirm our view that steady improvement in the housing market is likely to continue over the next two years’, Barclays economist Rob Martin wrote in a note to clients. Driving the advances are sold job and income gains, especially among millennials.
‘With improved employment and income prospects, millennials are an expanding portion of housing demand as they move out of their parent’s homes — increasingly to form families,’ Nationwide Chief Economist David Berson said.
The Northeast and Midwest region’s lead the advances, with gains of 44.87% and 44.1% respectively. Starts increase 23.2% in the West and 17.9% in the South.”
SOURCE: USA TODAY/Paul Davidson