Nationwide housing starts rose 20.2% to a seasonally adjusted annual rate of 1.135 million units in April from an upwardly revised March reading, according to newly released data from the U.S. Commerce Department. This is the highest level of housing production since November 2007. 

 

Both housing sectors registered production gains. Single-family housing starts increased 16.7% to a seasonally adjusted annual rate of 733,000 in April, while multi-family starts rose 27.2% to 402,000 units. “Our builders tell us that consumers are slowly returning to the market,” said Tom Woods, NAHB chairman and a home builder from Blue Springs, Mo. “This month’s report shows release of pent-up demand and evidence of a sustainable housing recovery.”

 

“The April gains make up for the production dips we saw in the past two months, but single-family housing is still only about halfway back to what could be considered a normal market,” said David Crowe, NAHB chief economist. “With low interest rates and affordable home prices, we expect more upward momentum in the months ahead.” 

 

Combined single- and multi-family starts were up in three out of the four regions in April. The Northeast posted an 85.9% gain, the Midwest rose 27.8% and the West increased 39%. Housing production dropped 1.8% in the South. 

 

Overall permit issuance rose 10.1% in April to a rate of 1.143 million. Multi-family permits registered a 20.5% gain to a rate of 477,000, while single-family permits increased 3.7% to 666,000. Regionally, the Northeast, South and West posted respective permit gains of 38.8%, 9.9% and 3%. Permits dipped 1.3% in the Midwest.

 

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