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Last Update: 17-Nov-11 09:38 ET
Housing Starts Remain Strong on Elevated Multifamily Construction
New housing starts declined from a downwardl revised 630,000 (from 658,000) in September to 628,000 in October. The Briefing.com consensus expected starts to fall to 604,000.
Multifamily starts, which represented the bulk of the gain in September, only declined by 8.3% in October to 198,000 units. This is still well above their average levels and suggests a further decline in November is likely.
Single-family starts increased 3.9% in October to 430,000 homes. The gain offset a downward revision for September from 425,000 to 414,000.
Homes under construction increased for the second consecutive month, the first time that has happened since the housing bubble peaked in 2006.
While it is still too early to call a bottom in residential construction, the two-month gain is an encouraging sign.
Multifamily starts, which represented the bulk of the gain in September, only declined by 8.3% in October to 198,000 units. This is still well above their average levels and suggests a further decline in November is likely.
Single-family starts increased 3.9% in October to 430,000 homes. The gain offset a downward revision for September from 425,000 to 414,000.
Homes under construction increased for the second consecutive month, the first time that has happened since the housing bubble peaked in 2006.
While it is still too early to call a bottom in residential construction, the two-month gain is an encouraging sign.
