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Last Update: 20-Dec-11 09:39 ET
Housing Starts Reach Their Highest Level Since April 2010
The number of housing starts increased from 627,000 in October to 685,000 in November. The Briefing.com consensus expected housing starts to remain at 627,000.
Housing starts are now at their highest level since April 2010 when the homebuyer tax credit artificially boosted production. Excluding that one-time event, housing starts are at their highest level since October 2008.
The increase in starts was primarily due to a 25.3% surge in multifamily construction.
Multifamily construction tends to move sideways in a sawtooth-type pattern. A surge in multifamily construction one month typically leads to a pullback next month. Over the last several months, however, multifamily construction has trended upward as demand for rental units has increased. The expected pullback in construction in December may be smaller than normal as builders continue to feed the demand for rental properties.
Single-family construction, which is notably more stable, increased 2.3% in November after increasing 3.6% in October.
The number of units under construction increased for the third consecutive month and is now at its highest point since January. This bodes well for the construction spending component for fourth quarter GDP.
Housing starts are now at their highest level since April 2010 when the homebuyer tax credit artificially boosted production. Excluding that one-time event, housing starts are at their highest level since October 2008.
The increase in starts was primarily due to a 25.3% surge in multifamily construction.
Multifamily construction tends to move sideways in a sawtooth-type pattern. A surge in multifamily construction one month typically leads to a pullback next month. Over the last several months, however, multifamily construction has trended upward as demand for rental units has increased. The expected pullback in construction in December may be smaller than normal as builders continue to feed the demand for rental properties.
Single-family construction, which is notably more stable, increased 2.3% in November after increasing 3.6% in October.
The number of units under construction increased for the third consecutive month and is now at its highest point since January. This bodes well for the construction spending component for fourth quarter GDP.
