Home-building in the US slipped in August, with declines in both single-family and apartment-building construction.
US housing starts fell 3 per cent from a month earlier to a seasonally adjusted annual rate of 1.126 million last month, the Commerce Department said Thursday. Moreover, new applications for building permits rose 3.5 per cent to 1.17 million, from a revised July rate of 1.13 million.
Permits for single-family homes rose to 699,000, the highest since January 2008.
Housing Starts, US
Starts on single-family homes, which account for nearly two-thirds of the market, fell to 739,000. Multifamily units, which include apartments and condominiums, fell to 387,000.
Three of four regions showed decreases in starts last month, led by a 33.7 per cent slump in the Northeast, according to the report. The South showed the only advance.
Construction levels for new homes remain low by historical standards. Despite this month’s slip, housing starts were 16.6 per cent higher in August than a year ago, and permits were up 12.5 per cent from a year ago.
New home construction in the South rose to 590,000 in August, the highest level since late 2007 and 10.1 per cent above the year-ago figure.
The National Association of Home Builders/Wells Fargo builder sentiment index rose to 62 this month, the highest level since October 2005, from 61 in August, the group’s report showed Wednesday. Measures of buyer traffic and single-family sales both advanced.
“The housing recovery will continue to be bumpy, but we expect it to continue.” said Michelle Meyer, deputy head of US economics at Bank of America Corp in New York, NY. “The labor market has improved, the economy has improved and we’re seeing pent-up demand for housing. So the backdrop is very supportive.”