Last Update: 17-Oct-14 08:55 ET
- Housing starts increased 6.3% in September to 1.017 mln from a slightly upwardly revised 957,000 (from 956,000) in August. The Briefing.com consensus expected housing starts to increase to 1.013 mln.
- Single-family construction rebounded after a one-month decline. These starts increased 1.1% to 646,000 from 652,000 in August.
- Multifamily housing starts increased 15.6% to 371,000 in September after falling 28.0% in August.
- We expect to see significant volatility in the multifamily sector, so the big down-and-up movement over the last two months is nothing unusual. The rebound in the normally stable single-family construction is a much better indicator of the health of the residential construction industry. While single-family starts haven’t broken out of their 12-month moving average (637,000), we are pleased that construction levels remain on a firm sideways trend as opposed to beginning a downward slide.
- After declining for the first time since August 2011, the number of units under construction rebounded in September. Construction levels increased 0.4% to 790,000 from 787,000. Since GDP is measured by put-in-place values in construction spending, the increase in the number of units currently being worked on should bode well for growth.
- After a rocky August, home construction levels returned to its previous trends in September.