Housing Starts: Best Since 2007

Green Escrow | New construction, housing

Recently we discussed Home Sales: Best Since 2007; not surprisingly we can now report that, according to the National Association of Realtors (NAR), single-family housing starts reached their highest levels in July 2015 since, you guessed it, 2007. On the other hand, the up-and-down again multi-family market was down in July by nearly 17 percent.

The National Association of Home Builders (NAHB) reported that confidence amongst builders the single-family market continued to be strong, although accessing land labor remains a problem. Moreover, the NAHB attributed the steep July decline in the multi-family market to an abnormally robust June.

Just how confident are builders these days? Just last week, the latest National Association of Home Builders/Wells Fargo Housing Market Index stated that builders are feeling more confident over the new single-family home market than at any time since November 2005.

Housing Starts Increasing Nationwide

Green Escrow | New construction, housing

The news is good and may be getting better still.

According to the latest statistics, nationwide housing starts increased 20.2 percent to a seasonally adjusted annual pace of 1.14 million units in April. This is the highest level of housing production since November 2007 and the largest month-over-month increase since February 1991.

New construction for single-family homes — which make up the largest share of the market — rose to its highest level since January 2008. In addition, multi-family units also rose significantly registering a 27.2 percent increase in April.

Finally – and possibly the best news of all – housing permits, a key barometer for future home construction, increased to a near seven-year high at a 1.14 million unit rate.

Analysts cited a continue rise in employment for young adults – “millennials” – as a prime factor as they move out on their own and prepare to enter the housing market.

The forecast for the second quarter is for a substantial increase in housing.