WASHINGTON (AP) — U.S. builders started construction on single-family homes and apartments in September at the fastest rate since July 2008, a further indication that the housing recovery is strengthening. þþThe Commerce Department said Wednesday that builders broke ground on homes at a seasonally adjusted annual rate of 872,000 in September. That's an increase of 15 percent from the August level. þþApplications for building permits, a good sign of future construction, jumped nearly 12 percent to an annual rate of 894,000, also the highest since July 2008. þþThe strength in September came from both single-family construction, which rose 11 percent, and apartments, which increased 25.1 percent. þþConstruction activity is now 82.5 percent higher than the recession low hit in April 2009. Activity is still well below the roughly 1.5 million rate that is consistent with healthier markets. þþStill, the surge in construction suggests builders believe the housing rebound is durable. þþBuilder confidence reached at a six-year high this month, according to a survey by the National Association of Home Builders. The group's index of builder sentiment rose to a reading of 41. While that's still below the level of 50 that signals a healthy market, it has steadily climbed over the past year from a reading of 17. þþSales of new and previously owned homes have been slowly improving this year, and home prices are starting to show consistent gains. þþRecord-low mortgage have encouraged more people to buy. And the Federal Reserve's aggressive policies could push long-term interest rates even lower, making home-buying affordable for the foreseeable future. þþHousing is expected to keep improving next year. But many economists say economic growth will stay muted until companies step up hiring and consumers start spending more. þþThough new homes represent less than 20 percent of the housing sales market, they have an outsize impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in tax revenue, according to data from the home builders group. þ
Source: NY Times
