US housing starts jumped to their highest level in nearly 7-1/2 years in April and building permits soared.
Groundbreaking surged 20.2 per cent to a seasonally adjusted annual pace of 1.14 million units, the highest since November 2007, the Commerce Department said Tuesday. The per cent increase was the biggest since February 1991. Adding to the report’s strong tenor, March’s starts were sharply revised higher. Groundbreaking for single-family homes, which accounts for the largest share of the market, hit its highest level since January 2008.
While April’s sharp acceleration in starts likely reflected pent-up demand during a harsh winter, a 10.1 per cent jump in permits for future home construction to a near seven-year high 1.14 million-unit rate indicated the rebound was sustainable.
US Housing Starts
Single-family homes groundbreaking gained 16.7 per cent. Starts for the multi-family homes segment increased 27.2 per cent. Single-family permits increased 3.7 per cent last month. Multi-family permits surged 20.5 per cent.
Home building is being boosted by solid gains in household formation as more young adults find employment and very tight housing inventories.
Last month, groundbreaking vaulted 85.9 per cent in the Northeast. There were also outsized gains in the Midwest and the West. Though starts fell 1.8 per cent in the South, where most of the home building takes place, building permits were up 9.9 per cent.