Housing Starts Rise to a 21-Year High in January
Housing starts in January were at their highest level in 21 years, the Commerce Department announced last week, rising 4.7% to a seasonally adjusted annual rate of 2.159 million units, which was 11.6% above the pace of a year earlier.
Single-family homes were being built at an all-time high of 1.76 million units in January, up 2.7% from December and 12.5% from January of 2004.
“Builders are striving to keep up with demand, and with mortgage rates and other market conditions still very favorable, they see strong months ahead,” said NAHB President Dave Wilson.
“There’s no question that this is a demand-driven housing market right now and that builders are reacting to it,” said NAHB Chief Economist David Seiders. “The single-family market, in particular, is crying out for supply, and increases in house prices are symptomatic of a market that’s being buoyed by demand while constrained by land-use controls in many areas.”