Housing Starts Rise in Multi-Family Home Construction
September 19, 2018
U.S. housing starts rose significantly in August for multi-family construction, forecasting a positive outlook for the housing market. Interest rates for home loans have increased, but houses continue to be built more frequently, according to a recent Reuters article.
For the month of August, housing starts rose 9.2%, bringing the annual rate to 1.282 million, as stated by the Commerce Department. Most of August's gain fell on the shoulders of multi-family housing, which grew by 29.3%. Single-family homes, conversely, rose only 1.9%. While more multi-family homes were built in August compared to July, more single-family homes were built in total: 406,000 multi-family units compared to 876,000 single-family. Despite these gains, building permits fell about 6%.
First-time buyers have still been struggling in this robust economy, especially with higher mortgage rates. The prices of houses have gone up, also making first-time buyers wary of home purchasing. Although more homes continue to be built, whether people will actually buy them is still in question.
—Christie Citranglo, editorial associate
I find it interesting that multi-family homes were built with an increase of 29.3%, while single-family homes only rost 1.9%. I've heard that millennials tend to rent longer before buying a home, so maybe this is one reason why multi-family homes are more popular right now. It is good that more are being constructed or have been built in recent months because that means more options for millennial renters.