ZCZC
BCN-16
US-ECONOMY-HOUSING-INDICATOR
US home construction hits 12-year high in August
WASHINGTON, Sept 19, 2019 (B SS/AFP) – US home construction in August hit
its fastest pace in 12 years amid a surge in the building of apartment
houses, official data showed Friday.
Meanwhile, permits for construction, a sign of supply in the pipeline, also
bounded higher, with the multi-family segment likewise leading the way, the
Commerce Department reported.
The late-summer construction rush reversed months of stagnation in the
housing market, where uncertainty about damage from the trade war had made
home builders wary.
The key sector of the economy has also faced constraints from a shortage of
workers, higher costs for some materials, and rising house prices which have
deterred would-be homebuyers.
The increase could also support GDP growth in the third quarter of the year
but economists cautioned against reading too much into a single month’s data.
Housing starts in August jumped 12.3 percent to an annual rate of 1.36
million, the fastest pace since June of 2007, according to the monthly
report, shattering economists’ forecasts.
The all-important single-family segment rose only 4.4 percent, well within
the margin of error, but apartments zoomed up 30.9 percent.
Meanwhile, permits for construction likewise hit their fastest pace since
2007, rising 7.7 percent to an annual rate of 1.42 million units.
“Homebuilders have been nervous, given the uncertainty triggered by the
trade war and the accompanying volatility in the stock market but their
confidence has risen in recent months and single-family permits are trending
upwards,” Ian Shepherdson of Pantheon Macroeconomics wrote in a note to
clients.
“We look for further gains.”
BSS/AFP/HR/1005