In July, 2014, residential construction in America increased by nearly 16 percent, demonstrating faster gains than shown in the previous eight months, according to Construction Global.
The seasonally adjusted annual rate achieved in July was 1.09 million homes, reported the U.S. Department of Commerce. This higher rate was attained even after construction rates fell in both June and May.
Despite the signs of optimism in July’s gains, industry sources say U.S. economic conditions are still hindering construction growth. The number of homes being built in the country is well below what some sources say would be a consistent rate of 1.7 million new homes per year.
Both single-family and multifamily construction increased in July, with single-family home construction up more than 8 percent and apartment construction up some 33 percent.
Building permit applications also increased, showing a rise of just over 8 percent to an annual rate of 1.05 million.
Regionally, housing construction starts in the northeastern United States increased a substantial 44 percent. In the South, residential construction was up almost a third at 29 percent. The West showed an increase in home sales of nearly 19 percent. Only the Midwest region of the U.S. indicated a decline, with construction starts falling by almost 25 percent in that region.
The overall improvement in the U.S. housing numbers is attributed to improved job growth and declines in mortgage rates. First-time home buyers are still at a disadvantage, however, from factors such as slow wage growth and stringent lending standards.
Construction industry professionals who need the most up-to-date building permit data and housing start information can turn to Construction Monitor for detailed information derived from actual permit departments throughout the country. Contact us today for more information on the condition of the U.S. home building market and how current developments are affecting American contractors, manufacturers and suppliers.
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