Home PoliticsAmerica US Housing Boom Continues

Construction projects started in the hot US housing market jumped sharply in June, according to government data Tuesday, offering hope more homes will come on the market and ease the supply crunch.

Housing starts increased 6.3 percent compared to May surging to an annual rate of over 1.6 million units, seasonally adjusted, the Commerce Department reported.

And new construction of single-family homes also jumped 6.3 percent to nearly 1.2 million annualized, according to the report.

Any relief will be welcome in the US market which has boomed throughout the pandemic, driven by rock-bottom borrowing rates, which has sent home prices soaring and drained limited supplies.

However, new building permits issued in the month fell 5.1 percent, the data showed, which signals fewer homes in the pipeline in the industry squeezed by high material costs and a labor shortage.

“The drop in permits is more important than the jump in starts,” said Ian Shepherdson of Pantheon Macroeconomics.

“The bad news is that permits lead starts, and they are trending inexorably downwards, in the wake of the fall in new home sales.”

The South saw the biggest increase in new building while starts slowed in the Midwest, according to the data.

Compared to June 2021, housing starts are 29.1 percent higher, while building permits are 23.3 percent higher, the report said.

You may also like

logo-white

Your Trusted Source for Capital Markets & Related News

© 2024 LiveTradingNews.com – For The Traders, By The Traders – All Right Reserved.

The information contained on this website shall not be construed as (i) an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities or services, (ii) investment, legal, business or tax advice or an offer to provide such advice, or (iii) a basis for making any investment decision. An offering may only be made upon a qualified investor’s receipt not via this website of formal materials from the Knightsbridge an offering memorandum and subscription documentation (“offering materials”). In the case of any inconsistency between the information on this website and any such offering materials, the offering materials shall control. Securities shall not be offered or sold in any jurisdiction in which such offer or sale would be unlawful unless the requirements of the applicable laws of such jurisdiction have been satisfied. Any decision to invest in securities must be based solely upon the information set forth in the applicable offering materials, which should be read carefully by qualified investors prior to investing. An investment with Knightsbridge is not suitable or desirable for all investors; investors may lose all or a portion of the capital invested. Investors may be required to bear the financial risks of an investment for an indefinite period of time. Qualified investors are urged to consult with their own legal, financial and tax advisors before making any investment. Knightsbridge is a private investment firm that offers investment services to Qualified Investors, Members and Institutions ONLY. Qualified Investors are defined as individuals who have met those Qualifications in the relevant jurisdictions. Members are defined as individuals who have been accepted into the Knightsbridge membership program. Institutions are defined as entities such as banks, pension funds, and hedge funds. If you are not a Qualified Investor, Member or Institution, you are not eligible to invest with Knightsbridge. All investments involve risk, and there is no guarantee of profit. You may lose some or all of your investment. Past performance is not indicative of future results. Knightsbridge is not a registered investment advisor, and this disclaimer should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions. By accessing this website, you agree to the terms of this disclaimer. Thank you for your interest in Knightsbridge.