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Eye on the Economy: Home Construction Rebounds in July
David Crowe / Eye on Housing / August 20, 2014
After a disappointing June report, housing starts rebounded to an annual rate of 1.093 million for a 15.7% increase over the upwardly revised June level. The substantial June dip, caused by a fall in single-family construction in the South, was eliminated as single-family construction rose 8.3% with increases in three of the four regions. Midwest single-family starts were down 6.8% to a 109,000 rate, but remain at about the same level as the second quarter average.
The Census and HUD data also indicated that multifamily starts increased to a 437,000 annual rate, the highest since February 2006. This increase was also spread across three of the four regions. Rental demand should continue to be strong, with recent CPI data and NAHB calculations showing inflation-adjusted rents up 1.4% over the last 12 months.