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US housing starts, building permits increase in April
[WASHINGTON] US housing starts rose more than expected in April as builders ramped up the construction of single and multi-family homes, supporting views that the economy was regaining steam early in the second quarter.
Groundbreaking increased 6.6 per cent to a seasonally adjusted annual pace of 1.17 million units, the Commerce Department said on Tuesday. March's starts were revised up slightly to a 1.10 million-unit rate from the previously reported 1.09 million-unit pace.
Economists polled by Reuters had forecast housing starts rising to a 1.13 million-unit pace last month. The government revised seasonally adjusted housing starts data from January 2014 through March this year.
Last month's housing starts data added to strong April retail sales in suggesting that the economy was picking up momentum after growth almost halted in the first quarter.
Housing is being supported by a buoyant labour market, which is increasing employment opportunities for young adults, and in turn bolstering household formation.
In April, groundbreaking on single-family housing projects, the largest segment of the market, increased 3.3 per cent to a 778,000-unit pace.
Single-family starts in the South, where most home building takes place, jumped 9.0 per cent to their highest level since December 2007. Single-family starts surged 12.8 per cent in the Midwest, but fell in the Northeast and West.
Housing starts for the volatile multi-family segment soared 13.9 per cent to a 394,000-unit pace.
Building permits rose 3.6 per cent to a 1.12 million-unit rate last month. Permits for the construction of single-family homes increased 1.5 per cent last month, while multi-family building permits advanced 8.0 per cent.