Monday, February 26, 2024

U.S. single-family home construction started in December

Construction of single-family homes in the United States fell sharply in December after a series of strong increases, but a lack of second-hand homes for sale continued to support new construction.

Single-family housing starts, which account for the majority of homebuilding, fell 8.6% last month to an annualized rate of 1.027 million units, the Census Bureau said. at the Commerce Department on Thursday.

The November data was revised downward and showed that the increase in single-family housing started at 1.124 million units instead of the previously reported 1.143 million.

Last month’s rain likely contributed to the decline in home construction. Single-family home starts increased 15.8% year over year in December.

A survey from the National Association of Home Builders (NAHB) showed Wednesday that confidence among single-family home builders improved significantly in January.

This happened as the interest rate on the popular 30-year fixed mortgage continued to fall to 6.66% after hitting a 23-year high of 7.79% at the end of October, according to agency data. Freddie Mac mortgage financing company.

The survey showed that the proportion of builders reporting house price declines in January was the lowest in five months.

Permits for future construction of single-family homes rose 1.7% to a pace of 994,000 units last month. The housing market is under pressure from rising borrowing costs and a continuing shortage of stock, with limited sales of existing homes.

However, demand for new construction drove residential investment, which rebounded in the third quarter after nine consecutive quarterly declines. Housing projects with five or more units increased by 7.5% to 417,000 units in December.

World Nation News Desk
World Nation News Desk
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