Home builders ramped up the pace of housing starts to a seasonally adjusted annual rate of 2.07 million units in November, the Commerce Department reported. This is 4.5 percent above October’s upwardly revised estimate of 1.98 million units, 17.6 percent above the November 2002 rate, and the strongest rate of housing production since February of 1984.
“We are closing in on an incredibly strong year,” said Kent Conine, president of the National Association of Home Builders (NAHB) and a home and apartment builder in Dallas. “Builders have been striving to meet robust demand for homes, and the market still has a lot of strength as we approach year-end.”
“The key driver for housing has been the favorable interest rate structure, and ongoing solid increases in house values also have fueled demand for both single-family homes and condo units in multifamily structures,” said NAHB Chief Economist David Seiders.
Single-family starts reached their highest pace on record in November — a seasonally adjusted annual rate of 1.695 million units. This was 3.3 percent above the upwardly revised October rate and 20.8 percent above the November 2002 pace. Multifamily housing starts increased 10.6 percent over October to a seasonally adjusted rate of 375,000 units and were 5 percent above the pace of a year ago. Construction of new homes and apartments rose in all regions but the South in November. For the month, issuance of total building permits was down 5.4 percent from October to a seasonably adjusted rate of 1.874 million units, as builders worked down a sizeable portion of a near-record backlog of unused permits. Issuance of new building permits was down across all regions. NAHB now estimates a total of 1.84 million units by year’s end.