Single Family Housing Starts Surge

By
Real Estate Broker/Owner

According to the Census Bureau, housing starts rose 3.6% in June from last month to a seasonally adjusted annual rate of 582,000, this is the highest pace since November of 2008. 

Interestingly it was only in April, two months ago that housing starts had made a record low.

The story within the report however is that demand for single family housing starts rose 14.4% from last month to a seasonally adjusted annual rate of 470,000, this is the highest pace since October of 2008.

The macro-perspective of this data is that overall, housing starts are still down -46% from last year and single family housing starts are still down -28.2% from 2008...and 2008 was a really bad year for the housing industry.  These numbers still have a long ways to go.

The good news about this report is that good things happen when homes are built.  Jobs are created, materials and supplies are purchased, and municipalities will have a new property tax revenue source.

And while critics will point out that the housing market already has too much inventory and that we don't need any more homes, the reality is that the new home market only comprises about 8% of the total number of homes for sale.

Comments (0)