Single-Family Home Construction Rises

Construction of single-family homes rose 1 percent in July, the fifth month of continuous increases and a 37 percent rise compared to last winter when housing construction hit bottom, the U.S. Commerce Department announced Tuesday.

Construction of apartment buildings fell 13 percent in July, which pushed the combined level of construction starts down 1 percent to a seasonally adjusted annual rate of 581,000 units. This number surprised some knowledgeable observers who had predicted an overall increase.

Applications for building permits also declined in July, down 2 percent from June to an annual rate of 560,000 units.

Most economists ignored the bad news. "It's the general trend that matters and with housing, the direction is up," wrote Joel Naroff, president of Naroff Economic Advisors.

Source: The Associated Press, Alan Zibel (08/18/2009)

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