US home building rebounded in September on the strength of apartment construction, a category that provides less of an economic boost than single-family homes. Housing starts rose 6.3 per cent in September from a month earlier to a seasonally adjusted annual rate of 1.017 million units, the Commerce Department said Friday. Building permits increased 1.5 per cent last month to a 1.018 million rate.
After a sharp fall early in the year, starts did rebound to match a postrecession high of a 1.1 million annual rate in July before slipping in August. Starts in August fell 12.8 per cent from July, a slightly smaller decline than initially estimated.
Single-family starts remain down 9 per cent from the postrecession peak established in November 2013. Starts of properties with five or more units, mainly apartment buildings, have increased 22.7 per cent so far this year, compared with the first nine months of 2013.
US Housing Starts
Newly started single-family units, roughly two-thirds of the market, rose just 1.1 per cent in September. Permits for the category declined 0.5 per cent. It has largely been a disappointing year for single-family construction, with starts up just 3.8 per cent through the first nine months of the year, compared with the same period in 2013.