According to the Commerce Department on Wednesday, U.S. home builders started construction of new homes at the highest rate since July, 2008. Their report also shows that the construction companies are planning to continue this building activity through the rest of the year.
This good news shows that the economy is strengthening and builders’ confidence in it is building. Which will also result in good news for remodelers, general contractors, and other home improvement professionals as home owners’ confidence will follow suit and they’ll begin to open up their wallets even more.
New home construction starts jumped up 15% in September, to a seasonally adjusted annual rate of 872,000. Single-family home construction was up 11% at the fastest rate in 4 years. Multi-family construction increased at 25.1%. And applications for building permits was up 12% (also the highest in 4 years) and those permits indicate future plans for more construction.
According to the chief global strategist at BTIG:
“If there was any doubt that the housing market was undergoing a recovery, even a modest one in the face of the terrible 2008 decline, those doubts should be erased by now.”
With this new housing recovery and building frenzy, it’s predicted that it will add an additional quarter-percent to the country’s overall economic growth for the year.