Housing Starts Soar 13.2%

Housing starts jumped 13.2% for April to a seasonally adjusted annual rate of 1,072,000, according to a Commerce Department report (link opens a PDF) released today. After clocking in at a revised 947,000 for March, this latest report came as a pleasant surprise for analysts, who had expected a smaller 3.5% rise. The gains reported today were driven by a 42.9% jump in the construction of apartments and condominiums. The rate of building single-family homes rose just 0.8%.

Source: Census.gov. Housing starts seasonally adjusted annual rate.

Housing permits also increased, up 8% to a seasonally adjusted annual rate of 1,080,000. As with starts, analyst expectations of a 1,020,000 rate for permits proved overly conservative. Housing completions, on the other hand, finished off the month down 3.9% at an annual rate of 847,000. 

Across the country, gains were far from equal. While starts soared 42.1% in the Midwest and 28.7% in the Northeast, the West increased 11.1% and the South edged up just 1.5%. 

Over the last year, housing starts have increased 26.4%, permits are up 3.8%, and completions have gained 21.2%. 

Today's news comes a day after a report revealed that homebuilder confidence took a dip for May. But with National Association of Home Builders Chief Economist David Crowe saying that "builders are waiting for consumers to feel more secure about their financial situation," this report's coinciding increases for both starts and permits might point to sustainable expansion.

-- Material from The Associated Press was used in this report.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2961112, ~/Articles/ArticleHandler.aspx, 9/23/2014 12:24:18 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement