Single-family housing starts hit fastest pace since 2007
Posted on Tuesday, August 25, 2015 at 9:52:51 PM
When it comes to housing starts, single-family homes were on top in July.
In fact, homebuilders began construction on single-family homes at their fastest pace since 2007. Housing starts rose 0.2 percent in July to a seasonally adjusted rate of 1.21 million homes, according to the Commerce Department. Meanwhile, construction of single-family homes surged 12.8 percent in the same month to hit its fastest rate since December 2007. In total, housing starts have increased 11.3 percent so far in 2015.
Tara Sinclair, a George Washington University professor and chief economist for job site Indeed, explained to The New York Times that confident real estate developers and more construction jobs are behind the rise.
"We'll know the economy is really hitting stride when we see these starts in the range of 1.5 million," she added.
More people are in search of residential financing than in recent years, and the surge in demand for homes this year has driven up prices, a trend builders can begin to reverse by increasing inventory. Right now there is just over five months' supply of new homes, compared to six months in a healthy market.