That’s the highest level since November 2007, one month before the Great Recession started. Construction on single-family homes hit a nine-year high.
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Nationwide housing starts rose 5.2 percent to a seasonally adjusted annual rate of 1.178 million units in February, according to newly released data from the U.S. Department of Housing and Urban Development and the Commerce Department.
Economists noted that warm February weather may have led to higher-than-usual building activity, after housing starts fell in January and December. The figures came as welcome boost to the markets after analysts had been expecting housing starts to rise to a 1.15 million-unit rate for February.
Some economists took the news as a sign that housing momentum was slowing in 2016 after a robust 2015 in which housing contributed more than a quarter of a percentage point to gross domestic product growth over the year.
Tempering the good news a little and dampening the enthusiasm a bit was the news that Building permits dropped 3.1 percent to a rate of 1.17 million-units for last month.
Permits for single-family homes, which account for about three-quarters of the housing market, edged up slightly last month and remain near a postrecession high.
With over 20 years’ experience in the heart of the investment industry, Ben Myers has become one of the most respected commentators in the financial world.
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Housing permits, the leading indicator for future housing starts, decreased -3.1% in February, due to a -9.1% decrease in permits issued for multifamily structures with five units or more. Labor and land shortages, however, remain a challenge for builders, a survey showed on Tuesday. Permits are running 6.3% above year-ago levels. Historically low interest rates and ongoing job creation should continue to lend the housing market support. The number of existing homes tentatively sold across the USA fell in January, the National Association of Realtors said late last month. New construction in the Midwest reached the highest level in 1½ years.
