June Housing Starts at Fastest Pace Since Recession
Jul 20, 2012
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Nationwide housing production rose by 6.9% to a seasonally adjusted annual rate of 760,000 units in June 2012, according to U.S. Census Bureau data. June showed the fastest pace of new-home construction since October 2008.
"This is one more piece of evidence that housing is starting to take back its traditional role of leading the nation out of recession, and tracks with our forecast for continued improvement in new construction through the end of this year," said National Association of Home Builders Chief Economist David Crowe. "While many challenges continue to weigh down the housing recovery - including those related to builders' and buyers' access to credit, poor appraisals and the number of distressed properties in certain markets - production of single-family homes is now the strongest it has been since 2010 due to rising consumer demand brought on by improving market conditions."
Single-family housing starts rose in June for the fourth month to a seasonally adjusted annual rate of 539,000 units, their fastest pace since April of 2010.
Multifamily starts rose 12.8% to 221,000 units.
June saw monthly volatility on the multifamily side of the business, but single-family starts were up in every U.S. region.
"This good report is in keeping with the results of our latest builder confidence survey, in which many of our members said that they are seeing an influx of more serious buyers to the new-homes market this summer," observed Barry Rutenberg, NAHB chairman and a home builder from Gainesville, FL. "What's especially encouraging is that, as consumers realize the advantages of purchasing a newly built home while prices and interest rates are so favorable, builders are able to put more crews back to work on construction sites across the country. This in turn is helping spur local economic growth, and policymakers need to be very careful to not take any steps that would derail the beginnings of such a positive trend at this crucial time."
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