US homebuilding rebounded 3.9% in August after declining in July with strong apartment construction
WASHINGTON – US residential construction rebounded 3.9% better than expected in August, on the strength of apartment construction.
The August increase left home construction at a seasonally adjusted annual rate of 1.62 million units, 17.4% above the rate of a year ago, the Tuesday reported. Commerce Department. Housing starts fell 6.2% in July.
August’s strength came from a 21.6% jump in apartment construction that offset a 2.8% drop in single-family home construction.
Building permit applications, a good sign of future activity, rose 6% to a seasonally adjusted annual rate of 1.73 million units. However, with demand still strong and a shortage of homes for sale, the outlook for home construction remains strong for the remainder of the year.
âHigher input costs and shortages remain headwinds for builders. But still low inventories should be positive for activity as these constraints ease, “said Rubeela Farooqi, chief US economist for High Frequency Economics.
Construction activity increased in all regions of the country except the West, which saw a drop of 21.1% Construction jumped 167.2% in the Northeast, but this jump came after falling 54.4% in July. Housing starts rose 11.4% in the Midwest and 1.4% in the South.
A monthly homebuilder opinion survey conducted by the National Association of Home Builders and Wells Fargo showed opinion soared to 76 in September, ending a three-month drop. The index remains well below the all-time high of 90 last November.
âThe single-family housing market has abandoned the unsustainable pace of construction last fall and has reached a still high but more stable level of activity,â said Robert Dietz, chief economist for home builders.