(USA Today)
The housing market is showing signs of hope as new home construction jumps to levels not seen since 2008. The Commerce Department reported that June numbers indicate that builders are finally getting more confident about the country’s economic recovery and beginning to construct new homes.
New construction in June rose 8.3% compared with the prior month, reaching a rate of 768,000 on an annual basis. This marks the highest level since October 2008 and shows that U.S. builders are continuing to ramp up construction to meet rising demand.
The increase was driven by a surge in single-family construction, which saw an 11.3% annual rate increase to 594,000 homes. This jump marked the highest level in 4½ years. Meanwhile, multi-family construction rose at an annual rate of 173,000 homes, the highest level since February 2011.
The uptick in construction could provide a needed boost to the housing market, where sales have been lagging, despite low mortgage rates. Recent declines in homebuilding were of particular concern to economists because new construction adds to demand for furniture, appliances, and home decor, which supports housing-linked jobs. This increase in new home construction could ultimately help boost the economy–both now and in the long-term.
