US home building slows in October, but permits jump

Posted On Monday, 23 November 2015 19:23 Published by
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New construction of US homes slowed in October, sees a jump in building permits pointed to a potential rebound in coming months.

Andres_Burgos

Washington - New construction of US homes slowed in October, led by a plunge in the multi-unit sector, but a jump in building permits pointed to a potential rebound in coming months.

Housing starts fell to an annual rate of 1.06 million last month, down 11 percent from September and the slowest pace since May, Commerce Department data released Wednesday showed.

But home construction remained strong overall this year, with starts in the first 10 months of 2015 up 10.2 percent from the same period in 2014.

The details of the report showed the underlying momentum in the housing market, one of the bright spots in the US economy. More people are finding work as jobs growth remains solid this year and interest rates, still at near historic lows for mortgages, are encouraging buyers.

Starts of single-family homes, the lion's share of the market, fell 2.4 percent in October but were up that much from a year ago.

The volatile multi-unit sector, which had a surge in starts in September, cooled off. Starts on buildings with at least five units plunged 25.5 percent, and were down 8.4 percent from October 2014.

In a positive sign for the coming months, building permits rose 4.1 percent to an annual rate of 1.15 million in October and were nearly three percent higher than a year ago.

"Fortunately, this decline in residential construction is likely only a blip because housing permits, including for single-family structures, recorded a healthy gain for the month," said Andres Carbacho-Burgos of Moody's Analytics.

Source AFP

Last modified on Monday, 23 November 2015 22:01

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