Housing starts rose less than expected in August as groundbreaking on multifamily home projects fell, but the trend continued to point to a turnaround in the housing market.
The Commerce Department said on Wednesday housing starts increased 2.3 percent to a seasonally adjusted annual rate of 750,000 units. July's starts were revised to show a 733,000-unit pace instead of the previously reported 746,000.
Economists polled by Reuters had forecast residential construction rising to a 765,000-unit rate. Compared to August last year, residential construction was up 29.1 percent.
Housing starts are now a third of their 2.27 million-unit peak in January 2006. The housing market, the Achilles heel of the recovery from the 2007-09 recession, is slowly healing.
Sales have been creeping up and the house price decline has bottomed, with a tightening supply of properties on the market raising prices in some metropolitan areas. In addition, homebuilder sentiment touched a six-year high in September.
Home building is expected to add to gross domestic product growth this year for the first time since 2005.
Though residential construction accounts for about 2.5 percent of GDP, economists estimate that for every new house built, at least three new jobs are created.
Read more: http://www.reuters.com/article/2012/09/19/us-usa-economy-housing-idUSBRE88I0OR20120919
No comments:
Post a Comment