Residential construction activity in the U.S. is bouncing back.
The pace of housing starts jumped 15.7% to a 1.093 million unit rate in July, smashing expectations for a pace of 965,000.
Permits jumped 8.1% to 1.052 million. Economists were expecting a pace of 1.052 million.
Demand for single-family units was up, but demand for multi-family units continues to boom.
Building permits for structures with five or more units (e.g. apartment buildings) jumped 23.6%. Starts surged 33.0%.
All of this confirms Monday’s better-than-expected NAHB housing market sentiment report.
“As the employment picture brightens, builders are seeing a noticeable increase in the number of serious buyers entering the market,” said the NAHB’s Kevin Kelly.
Here’s a regional and structural breakdown of starts via the Census:
Here’s a breakdown of permit activity:
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