Residential home construction in the US has hit a 4 year high according to the latest information from the U.S. Census Bureau and the Department of Housing and Urban Development (HUD).
The overall growth is fuelled by a growth in building permits, growing housing starts and growing completions – growth across the board is yet more evidence that the US housing market is now surely in recovery.
According to the report 894,000 building permits were issued for privately-owned homes in September, an increase of 11.6% compared to August and 45.1% compared to last year. Building permits for single-family homes also increased by 6.7% on the month to 545.000.
Housing starts for September were 872,000 for privately-owned houses and 603,000 for single-family homes. This represents a growth of 15% month on month for the former and 11% month on month for the latter. The figure for privately-owned homes in total is 34.8% higher than September 2011.
The report also shows that 683,000 privately-owned homes were completed in September, a growth of 0.4% on the month and 13.8% on the year. Of that 524,000 of the completions were single family homes, which is an increase of 8.5% compared to August.
In the multi-family sector (buildings with 5 or more units), 323,000 building permits were issued, 260,000 projects were started and 145,000 were completed.
This is very positive news indeed, particularly that we are witnessing growth across the board and not just in the multi-family sector. Also because in the markets that have emerged as best performing in the US recovery weak supply after years of depressed construction is becoming as big a downside-factor as weak demand has been for the last 5 years. What's more construction is a big industry where employment is concerned and that is one area where America still needs to keep firing on all growth cylinders if the recovery is to really take hold.