Housing Starts Up in November

The National Association of Home Builders is reporting good news for the real estate industry! Nationwide housing production rose 8.9 percent to a seasonally adjusted annual rate of 574,000 units in November, according to figures released by the U.S. Commerce Department. The gain represented a partial bounce-back from an exceptionally slow month for housing activity in October, and was largely attributed to a big increase on the multifamily side.

Single-family housing starts made up some of the ground they lost in October, posting a modest 2.1 percent gain to a seasonally adjusted annual rate of 482,000 units in November. Meanwhile, multifamily starts rebounded from an all-time record low in the previous month with a 67.3 percent gain to a seasonally adjusted annual rate of 92,000 units in November.

Gains in housing production were registered across all regions of the country in November, with a 16.4 percent increase in the Northeast, a 3 percent gain in the Midwest, a 12.3 percent increase in the South and a nearly 2 percent gain in the West.

Permit issuance, which can be an indicator of future building activity, rose

6 percent in November to a seasonally adjusted annual rate of 584,000 units, its highest level in a year. Single-family permits rose 5.3 percent to 473,000 units, while multifamily permits rose 8.8 percent to 111,000 units.

Three out of four regions posted gains in housing permits for November, with a 4.7 percent increase reported in the Northeast, a 10.7 percent increase posted in the South, and a 2.7 percent gain registered in the West. The Midwest posted a 1.9 percent decline.