You are here

New US home construction rebounds in February

Thursday, March 16, 2017 - 22:25

41927317 - 16_03_2017 - FILES-US-ECONOMY-HOUSING-BUILDING.jpg
Construction of new US housing rebounded in February to its highest level in four months, the Commerce Department reported Thursday.

[WASHINGTON] Construction of new US housing rebounded in February to its highest level in four months, the Commerce Department reported Thursday.

And construction started on single-family homes jumped to the highest level in nearly 10 years, as the tight housing sector showed signs of adding supply in a tight market.

During the unseasonably warm month of February, total housing starts rose three percent to a seasonally-adjusted annual rate of 1.29 million units, its highest level since October.

The result was in line with analyst forecasts and 6.2 per cent above the results recorded in the same month last year.

sentifi.com

Market voices on:

Meanwhile, posting a second consecutive month of gains, single-family units jumped 6.5 per cent to 872,000 new units, a level not surpassed since Oct 2007.

However, the number of new housing permits dropped 6.2 per cent to an annual rate of 1.21 million, suggesting the pace of construction may slow.

With analysts saying many young people may be preparing to leave their parents' homes in the current economic recovery, but still reticent to take on mortgages to buy a home, builders have favored the construction of multi-unit buildings to serve the rental market, leaving a tight supply of houses.

AFP

Nespresso
Pair your daily business read with the perfect cup of espresso.

Subscribe to The Business Times today to receive your very own Nespresso Inissia coffee machine worth $188.

Find out more at btsub.sg/btdeal

Powered by GET.comGetCom