Housing construction ended 2012 on a high note, with new units in December rising 12% from November and 37% from a year ago.
The boom in construction shouldn’t be too surprising, given that permits have risen in recent months and that builder confidence has risen. But it is a clear indication that rising household formation and sharp drops in the number of homes for sale are finally benefitting home builders. Five facts help to put today’s report in context:
1. Multifamily housing starts accounted for the highest share of overall housing starts, at 30%, since 1986, when the U.S. experienced overbuilding in the apartment sector. Of course, back then, there were more than double the number of apartments being constructed. (The multifamily share of construction fell to just 15% in 2005, the peak year of new home construction).
Read more...Five Facts on the Housing Construction Rebound - Developments - WSJ
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