Housing starts in the United States increased at a seasonally adjusted annual rate of 1,186 million in June, a 17.4 percent increase from the 974,000 reported the previous month, Commerce Department data showed on Friday.
Economists’ expectations were unusually mixed for the June figure, reflecting the uncertainty surrounding economic data in the wake of the coronavirus closings. Based on the set of forecasts used, the June data exceeded or nearly coincided with the consensus prediction.
The survey by the National Association of Home Builders showed on Thursday that interest in buying single-family homes has skyrocketed in the wake of closings, work from home, urban unrest and looting, school closings, a national movement to remove the police and an increase in violence. crime in many cities. Living in an apartment in the city center seems to many families less attractive than in recent years.
“Demand for new homes is improving in low-density markets, including small metropolitan areas, rural markets, and large metropolitan neighborhoods, as people search for larger homes and anticipate greater flexibility for teleworking in the coming years. years, “said Robert Dietz, chief economist at NAHB. “The flight to the suburbs is real.”
Even after a second consecutive month of increases, construction activity remains 4 percent slower than last year.
Construction permit applications, a good indication of future activity, increased 2.1% to 1.24 million units.
Home builders had hoped that housing would rebound as the nation reopens, fueled by the lowest mortgage rates in 50 years. However, it is not clear if the rebound is sustainable as infections have increased, especially in the south, where businesses have reopened and people have increasingly ventured outside their homes.
The largest increase occurred in the Northeast, where single-family home construction increased 111.8 percent after nearly closing entirely in April. But that is by far the smallest market for single-family construction, with new projects at an annualized rate of just 72,000. The largest market, the South, jumped from 12.1 percent to 445,000. The Midwest recorded an annualized rate of 23.7 percent at 122,000. The West 4.9 percent to a meal of 192,000.
—The Associated Press contributed to this report.
