Housing starts and permits climb again
The housing market turned in another solid month of gains.
Housing starts in September increased 1.9% to a seasonally adjusted annual rate of 1.415 million from a revised August estimate of 1.388 million, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development reported today.
The latest housing starts figure is 11.1% ahead of the September 2019 rate of 1.274 million.
Single-family starts climbed 8.5% to a rate of 1.108 million from the August rate of 1.021 million.
According to the National Association of Home Builders (NAHB), the pace of single-family starts in September was the highest production rate since the summer of 2007.
The multifamily sector, including apartment buildings and condos, decreased to a 307,000 annual pace.
Housing permits in September rose 5.2% to a seasonally adjusted annual rate of 1.553 million from the revised August rate of 1.476 million. September’s numbers are also 8.1% above a rate of 1.119 million for the same period a year ago.
Single-family permits are up 7.8% to a rate of 1.119 million compared to an August rate of 1.038 million.
Lawrence Yun, chief economist for the National Association of Realtors (NAR), says the latest housing numbers bode very well for the overall economy.
“When homes get built, jobs are created through multiple cascading effects," Yun noted. "Aside from construction and trade contractors, lumber mills and moving trucks get going along with land developers and title companies. And of course, more inventory becomes available for consumers. That is why today’s data in surging housing starts is so welcome: moving the economy in a better direction. Homeownership will also rise with more choices."
Here’s how housing starts look by region:
- In the Northeast, total starts soared 66.7% while single-family jumped 20.7% compared to August. On a year-over-year basis, total starts are up 26.1% while single-family starts increased 16.7%.
- In the Midwest, total starts dropped 32.7% as single-family starts fell 16.4%. On a year-over-year basis, total starts are up 13.7% while single-family starts rose 17.7%.
- In the South, total starts rose 6.2% as single-family starts increased 17.7%. On a year over year basis, total starts are up 8.9% while single-family starts rocketed upwards by 24%.
- In the West, total starts increased 1.4% and single-family starts are up 1.6%. On a year-over-year basis, total starts have climbed 13.6% as single-family starts jumped 24.4%.
