National starts for single-family homes rose for the month of October and permits for future projects reached a six-year high. Both advancements point to economic growth for the 2015 year.
Starts of single-family homes increased by 4.2 percent, the biggest advancement since November 2013 according to the Commerce Department. In addition, figures indicate a slight drop (2.8 percent) in the number of multi-family home starts. Builders received 4.8 percent more permits in October. Wage growth and low borrowing costs are suspected to have contributed to this advance. Furthermore, figures published by Bloomberg News suggest there were more home under construction in October than any time since the end of 2008.
Growth in the housing market has in turn encouraged homeowners to invest in renovations. Lowe’s the second largest US home-improvement retailer reported profits increased 17 percent in the last 3 months.
According to a Bloomberg Report,
Today’s figures follow a report yesterday showing builder confidence rebounded this month. The National Association of Home Builders/Wells Fargo sentiment gauge advanced to 58, matching the second-highest level since 2005, from 54 in October. While the market recovers, demand is outpacing construction. The U.S. requires between 1.6 million and 1.9 million new units a year just to accommodate population growth and household formation, according to the Harvard Joint Center for Housing.
Rates for 30-year a mortgage dropped for the second week in a row to 3.99 percent. Analysts argue this paired with recent builder confidence suggest growth in the US housing market.
Read more here- “Singe-Family Housing Starts in US Rise Along with Permits,” (Lorraine Woellert, Bloomberg)
Olivia is a graduate of Villanova University where she studied Economics and History, minoring in Gender and Women's Studies. She also has experience working with federal legislatures on health care policy, women's issues, and Internet safety.