Construction of Single-Family Homes Continues to Rise

Housing starts jump unexpectedly

Triangle Business Journal

New residential construction in the United States rose 3.6 percent last month to an annual adjusted rate of 582,000 homes.

That’s up from the revised May estimate of 562,000 but still well below the June 2008 level, when the rate was a little more than 1 million.

The gain came in single-family construction, which rose 14.4 percent. Multifamily starts, however, fell 25.8 percent, according to the U.S. Census Bureau and U.S. Department of Housing and Urban Development.

“Why are the single- and multifamily construction markets headed in different directions?” asks Patrick Newport, an economist with IHS Global Insight. “Funding to finance commercial real estate projects, including new apartment units, has nearly dried up. Funding to buy homes, however, while tight, is available for those with good credit and a hefty down payment.”

Building permits rose to a seasonally adjusted rate of 563,000 in June, up 8.7 percent from 518,000 in May. However, building permits were down 52 percent last month from 1.1 million in June 2008.

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