The US housing recovery rolls on, with data released last night showing solid gains in housing construction.
Total housing starts in February grew by as seasonally-adjusted annual rate of 917,000, up from 910,000 in January and the second fastest pace since June 2008 (behind December’s 982,000):
The increase in dwelling starts in February were driven by single unit structures, which hit their highest level since June 2008 (618,000 annualised rate). Multi-unit (apartment) starts have also surged recently, although February’s 285,000 annualised rate was well below the 347,000 recorded in December (see next chart).
Building permits – a sign of future construction – also picked-up in February, increasing by 4.6% to 946,000. That was the best result since June 2008 (see next chart).
As noted previously, there is a strong correlation between house prices and dwelling construction, suggesting that the US housing recovery will continue into the foreseeable future (see next chart).
unconventionaleconomist@hotmail.com
