Novemberâ€™s Home Construction Points to a Housing Upturn
December 17, 2009 - After enduring an exceptionally slow October, housing starts rose 8.9% last month to a seasonally adjusted rate of 574,000 units. Multifamily housing starts were the biggest contributor with a whopping 67.3% gain, pulling new home construction out of a near 6-month slump.
In comparison, single-family housing starts posted a meek 2.1% gain for November, a figure likely overshadowed by multifamily starts. Permits, which provide insight to prospective building activity, were also up 6% for the month.
"Permits increasing in November is a hopeful indication that the desired impact of the tax credit on housing demand may be forthcoming early in 2010," National Association of Home Builders (NAHB) chief economist David Crowe stated.
Joe Robson, chairman of the NAHB, elaborates on the matter, "The fact that housing starts and permits rose last month is a good sign that we're headed in the right direction, albeit slowly, on the road to a housing recovery."