Housing construction surprises with August rebound — but permits spell another downturn!
Residential construction logged an unexpected rebound in August, with housing starts surging 12.2% month over month to a seasonally adjusted annual rate of 1.58 million units, according to the U.S. Census Bureau and the U.S. Department of Housing and Urban Development.
Starts handily beat expectations, with a Reuters poll of economists projecting a rate of 1.45 million units. Surprisingly, both multifamily and single-family starts rose during the month, even as the housing market grapples with a slowdown brought about by the uncertain economy and rising mortgage rate environment.
Single-family starts halted a five-month streak of declines, growing by 3.4% in August, which was likely due to some improvements in the availability of building materials. Single-family construction, however, remains low compared to recent standards: On a year-to-date basis, single-family starts are down 4%. By Arnie Aurellano,
Website content editor, Scotsman Guide