Home News Economics Construction of new homes in the US increased in January 2018

Construction of new homes in the US increased in January 2018

Construction of new homes

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Construction of new homes in the US increased in January to its highest level since October 2016. The number of new residential buildings under construction increased by 9.7% compared to the previous month to an annual level of 1.326 million, according to data from the Ministry of Commerce. This is the third growth in the last four months.
The builders show signs that they are planning to boost construction later this year. The number of building permits increased by 7.4% last month to an annual rate of 1.396 million.
The data exceeds the expectations of economists, who forecast growth of 4.2% in new homes and 0.8% in building permits. Last month’s rise in the construction of new homes largely reflects the growth of nearly 24% in the construction of apartments and other multifamily homes. The construction of single-family homes, which make the largest share of the market, increased by 3.7%.
Building permits for apartments are also increasing, while permits for single-family homes are declining.
Data on housing construction is highly volatile and is often revised later. The wider trend, however, also shows increase. They posted an increase of 7.3% in the 12 months to January.
The construction developers are confident that a strong labor market and steady economic growth are making more Americans move from rent to property.