U.S. Housing Starts Reach 12-Year High in August

Written by Haley Alber


September 19, 2019

U.S. homebuilding reached a more than a 12-year high in August as both single- and multi-family housing construction sped up, suggesting that lower mortgage rates finally gave the housing market a boost.

Wednesday’s report from the U.S. Census Bureau and the U.S. Department of Housing and Urban Development also showed permits for future home construction rose to levels last seen in 2007. Residential building permits rose 7.7% from July to an annual pace of 1.419 million.

Housing starts, a measure of new-home construction, climbed 12.3% in August from the prior month to a seasonally adjusted annual rate of 1.364 million. Data for July was revised up to show homebuilding falling to a pace of 1.215 million units, instead of decreasing at a rate of 1.191 million units as previously reported.

In August, it was strength in the multifamily sector that helped drive the steep climb in building. Construction of buildings with two or more units rose 32.8% from a month earlier. Single-family home construction, meanwhile, rose just 4.4%.

Permits for the construction of multi-family homes increased 13.3% to a rate of 553,000 units last month.

Housing-starts data are volatile from month to month and can be subject to large adjustments. August’s 12.3% increase for starts came with a margin of error of 10.2 percentage points. More broadly, home construction has been weak this year. In the first eight months of 2019, starts were down 1.8% compared with the same period in 2018.

Related Articles

U.S. Consumer Prices Rise 0.4% in October

U.S. Consumer Prices Rise 0.4% in October

Real Estate0 Comments Consumer prices rose a seasonally adjusted 0.4% in October, the Labor Department said Wednesday. Households paid more for energy products, healthcare, food and a range of other goods. The Consumer Price Index (CPI), which...

Gold Slumps Amid Optimistic U.S.-China Trade Matters

Gold Slumps Amid Optimistic U.S.-China Trade Matters

Real Estate0 Comments Gold was on track for the biggest weekly loss in three years as optimism revolving around U.S. and China trade matters sent markets soaring throughout the week.  Since Monday leading into Friday’s low, gold prices tumbled by...

Facebook’s Libra Could be Key For US to Beat China

Facebook’s Libra Could be Key For US to Beat China

Facebook’s Libra Could be Key For US to Beat China0 Comments Facebook’s (NASDAQ: FB) cryptocurrency Libra could be key for the US to beat China in developing a digital currency for emerging markets, according to Market Insiders, citing RBC...


Leave a Reply

Notify of