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

September Builder Confidence Holds Steady
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Comments 1

Guest - Kairi Gainsborough on Thursday, 06 December 2018 23:24

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.

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.
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