Housing Starts in U.S. Surge on Demand for Multifamily Units
Source: Bloomberg
By Alex Kowalski - Apr 16, 2013
New-home construction in the U.S. jumped more than forecast in March as multifamily projects climbed to the highest level in more than seven years.
Starts climbed 7 percent to a 1.04 million annual rate, the most since June 2008, after a revised 968,000 pace in February that was larger than previously reported, Commerce Department figures showed today in Washington. The median estimate of 80 economists surveyed by Bloomberg called for 930,000. Building permits, a proxy for future construction, fell.
Builders are rushing to satisfy growing demand for rental units, propelling the jump in construction that will help support economic growth. Work began on fewer single-family houses last month, adding to evidence that part of the market is pausing.
“Whether it’s driven by demand from homebuyers or renters, it doesn’t really matter because it’s roofs over peoples’ heads,” said Aneta Markowska, chief U.S. economist at Societe Generale in New York, who had the highest starts forecast in the Bloomberg survey. “There’s still a lot of room for improvement in housing, both for activity and for prices. This is critical for the U.S. economy.”
Read more: http://www.bloomberg.com/news/2013-04-16/housing-starts-in-u-s-surge-on-seven-year-high-for-multifamily.html
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