Homebuilders started construction on new homes at a seasonally adjusted annualized rate of 1.021 million, 12.1 percent higher than a year ago and up 4.1 percent from the prior month.
Single family home construction rose in the West and Midwest regions, declined slightly in the South and was down sharply in the Northeast, Census Bureau data released Thursday showed.
The National Association of Home Builders’ survey revealed homebuilder confidence has risen to its highest level ever in the wake of lockdowns, working from home, urban riots and looting, school closings, a national movement to defund police, the ongoing closures of many urban amenities such as theaters and museums, and a rise in violent crime in many cities. Living in an apartment in a city center strikes many families as less attractive than it has in recent years.
“New home demand is improving in lower density markets, including small metro areas, rural markets and large metro exurbs, as people seek out larger homes and anticipate more flexibility for telework in the years ahead,” said Robert Dietz, NAHB’s chief economist, said this summer. “Flight to the suburbs is real.”
Overall housing starts declined 5.1 percent in August compared with July, falling short of economist expectations. That figure was pulled down by multi-family construction, which includes urban apartment buildings. Construction of buildings with 5 or more units fell 25.4 percent in August, down 16.9 percent compared with a year earlier.
Permits for single family construction, a leading indicator for the market, rose 4.2 percent. These are up 15.1 percent from a year earlier. Permits for apartment buildings with 5 or more units fell 5.3 percent nationwide to 10 percent below the year prior level.
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