This January, permits for construction to build new homes reached a new high in 4 1/2 years, despite the fact that groundbreaking for new homes fell. The Commerce Department stated the groundbreaking on new home sites has fallen by 8.5 percent to a new annual unit rate of 890,000. This was caused by a drastic decrease of 24.1% in the multi family unit category. Good news is future home permits rose to a 925,000 unit rate and the starts for single family units rose up by .8%, both being the highest seen since 2008.
Although the data for these housing starts can be volatile and sometimes has large revisions, the U.S. revised statement shows the fastest pace since 2008 with the estimated unit rate rising to 973,000 since December. This shows the housing market gaining a foothold after the largest recession seen since the Great Depression. Last year, for the first time since 2005, the home building actually added to the nation’s economic growth. It is also anticipated to add to the growth again this year.