Housing Starts Surge Higher For Third Straight Month

New home construction rose more than expected in November, the third consecutive month of increasing home-building in response to skyrocketing demand for homes.

Residential starts rose 1.2 percent to a 1.547 million annualized rate from a downwardly revised 1.528 million a month earlier, according to Commerce Department data released Thursday. The median estimate of economists surveyed by Econoday was for 1.528 million.

Extremely low mortgage rates have helped keep homes within reach of buyers despite rising prices. Many Americans are relocating to suburbs in search of more space for remote working, remote schooling, and social distance. Major American cities have been plagued by climbing murder rates and shootings in the wake of anti-police marches that frequently turned violent and escalated into riots. At the same time, many of the amenities that make city life attractive—such as museums, music halls, theaters, bars, and restaurants—remain fully or partially closed due to anti-coronavirus restrictions.

Builders got permits for new construction in November at a seasonally adjusted annual rate of 1,639,000, 6.2 percent above the revised October rate of permits and is 8.5 percent above the November 2019 rate. That is the highest level of permit activity on record. Single-family authorizations in November rose to a rate of 1,143,000, 1.3 percent above the revised October figure.

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