The U.S. Census Bureau and the Department of Housing and Urban Development reported this week that privately-owned housing starts in October were at a seasonally adjusted annual rate of 1,009,000, 2.8 percent below the revised September estimate of 1,038,000. Single-family housing starts in October were at a rate of 696,000, 4.2 percent above the revised September figure of 668,000. The October rate for units in buildings with five units or more was 300,000.
Overall starts are 7.8 percent above the October 2013 rate of 936,000.
"The rise in single-family starts is more proof that the economy is firming and consumer confidence is growing," said Kevin Kelly, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Wilmington, Del. "We expect continued upward momentum into next year."
"The increase in single-family starts shows that the housing market continues to recover at a steady, gradual pace," said NAHB Chief Economist David Crowe. "On the multifamily side, production is stabilizing above historic levels as demand for rental housing increases."
Regionally in October, combined housing production dropped in Northeast, Midwest and West, with respective losses of 16.4 percent, 18.5 percent and 10.9 percent. Total production rose in the South by 10.1 percent.
Privately-owned housing units authorized by building permits in October were at a seasonally adjusted annual rate of 1,080,000. This is 4.8 percent above the revised September rate of 1,031,000 and is 1.2 percent above the October 2013 estimate of 1,067,000.
Regionally, the Northeast and Midwest registered overall permit losses of 21.5 percent and 11.4 percent, respectively. The South and West posted respective gains of 8.8 percent and 21.6 percent.
Single-family authorizations in October were at a rate of 640,000; this is 1.4 percent above the revised September figure of 631,000. Authorizations of units in buildings with five units or more were at a rate of 406,000 in October.