Housing Starts Jump in October
nationwide housing starts surged 25.5% in October 2016 to a seasonally adjusted annual rate of 1.32 million units.
Led by impressive gains in both single- and multi-family production, nationwide housing starts surged 25.5% in October 2016 to a seasonally adjusted annual rate of 1.32 million units, according to recent data from the U.S. Department of Housing and Urban Development and the Commerce Department. Single-family starts reached their highest level since October 2007, while multi-family production jumped 68.8% from the previous month.
“These robust figures correlate with strong builder optimism in the housing market,” said Ed Brady, chairman of the National Association of Home Builders (NAHB). “A firming job market, a growing economy and rising household formations will keep the housing recovery on track into next year.”
“Multi-family production bounced back after an unusually weak reading last month, while single-family starts exhibited unusually strong growth as well,” said Robert Dietz, NAHB chief economist. “Though October’s single- and multi-family production rates are clearly unsustainable, we expect continued growth in the housing sector in the months ahead.”
Single-family starts rose 10.7% in October to a seasonally adjusted annual rate of 869,000 units, while multi-family production climbed 68.8% to 454,000 units. Combined single- and multi-family starts posted double-digit gains in all four regions in October. The Northeast, Midwest, South and West increased 44.8%, 44.1%, 17.9% and 23.2%, respectively.
Overall permit issuance edged up 0.3% to a seasonally adjusted annual rate of 1.23 million in October. Single-family permits rose 2.7% to a rate of 762,000, while multi-family permits fell 3.3% to 467,000. Permit issuance increased 12.1% in the Midwest and 7.5% in the West. Meanwhile, the Northeast and South posted respective losses of 21.1% and 2.4%.
For more information, visit www.nahb.org.