New Housing Starts
The Commerce Department reported a rise of 0.3% in housing starts, amounting to a seasonally adjusted annual rate of 610,000 in September, up from 608,000 in August.
Single family starts rose 4.4% in September, while multi-family dwellings fell by 9.7%. It was the largest number of new homes being built in five months, and marked a 4.1% increase over last September.
“This is an encouraging sign that builders are continuing to build at a very slow pace, but nevertheless the increases are slow as they wait for consumers to get more confident,” said David Crowe, chief economist with the National Association of Home Builders.
Insecurity about the economy and jobs is the main fear holding consumers back from big purchases like homes, Crowe said.
Building permits, an indicator of future activity, fell by 5.6% in September driven by a 20% decline in multifamily. The last time building permits fell below 550,000 was in May 2009.
