New Residential Construction Continues Strong Rebound, Housing Points To Historic Boom For Sector
Washington, D.C. (PPD) — New residential construction statistics for housing starts and building permits again beat forecasts in September, defying the lingering effects due to coronavirus (COVID-19). The new residential construction statistics report below is released jointly by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development (HUD).
Building Permits
Privately-owned housing units authorized by building permits came in at a seasonally adjusted annual rate of 1,553,000. That’s 5.2% (±1.6%) above the revised August rate of 1,476,000 and is 8.1% (±1.8%) higher than the September 2019 rate of 1,437,000.
Forecasts ranged from a low of 1,425,000 to a high of 1,560,000. The consensus forecast was 1,520,000.
Single-family authorizations in September came in at a rate of 1,119,000, or 7.8% (±1.1%) higher than the revised August figure of 1,038,000. Authorizations of units in buildings with five units or more were at a rate of 390,000 in September.
Housing Starts
Privately-owned housing starts came in at a seasonally adjusted annual rate of 1,415,000. This is 1.9% (±8.8%) higher than the revised August estimate of 1,388,000 and an 11.1% (±11.3%) gain from the September 2019 rate of 1,274,000.
Forecasts ranged from a low of 1,375,000 to a high of 1,500,000. The consensus forecast was 1,463,000.
Single-family housing starts in September were at a rate of 1,108,000; this is 8.5% (±9.2) above the revised August figure of 1,021,000. The September rate for units in buildings with five units or more was 295,000.
Housing Completions
Privately-owned housing completions came in at a seasonally adjusted annual rate of 1,413,000 in September. That’s a stunning 15.3% (±11.4%) above the revised August estimate of 1,226,000, and is now a 25.8% (±11.5%) gain from the September 2019 rate of 1,123,000.
Single-family housing completions in September were at a rate of 921,000; this is 2.1% (±9.0%) above the revised August rate of 902,000. The September rate for units in buildings with five units or more was 480,000.
Housing Primed to Lead Economic Recovery
As People’s Pundit Daily (PPD) recently reported, indicators widely show the U.S. housing market is “booming”, surpassing pre-pandemic levels and expectations. Experts now foresee housing leading the economic recovery and have raised growth forecasts for the sector.
The NAHB Housing Market Index (HMI) reported builder confidence unexpectedly rose another 2 points to 85 in October, smashing the all-time high and beating the consensus forecast.
The National Association of Realtors (NAR) reported pending home sales hit an all-time high in August, surging nearly three times the consensus forecast by 8.8%. That marked the fourth straight month of solid gains.
Existing home sales in August hit the highest level since December 2006. The stronger-than-expected increase for the third consecutive month follows a record 24.7% gain in July.
New home sales in August — new residential sales statistics — hit the highest level since December 2006. The stronger-than-expected increase for the third consecutive month followed a record 24.7% gain in July.
