By Shobhana Chandra
Bloomberg
Work began in January on the most U.S. single-family houses in over four years and permits for future projects climbed, setting the stage for construction to keep adding to economic growth in 2013.
Builders broke ground on 613,000 houses at an annualized rate last month, the most since July 2008 and up 0.8 percent from December, Commerce Department figures showed today in Washington. Total housing starts dropped to an 890,000 rate, lower than forecast and restrained by a slump in construction of multifamily units, which is often volatile.
With builders such as PulteGroup Inc. and Lennar Corp. reporting rising orders, the industry that was at the center of the financial crisis is poised to boost the economy after emerging as a bright spot in 2012. More hiring and easier access to credit are needed to help complement historically low mortgage rates and sustain the rebound.
“We ended 2012 on a solid note and we do have some momentum heading into this year,” said Gus Faucher, a senior economist at PNC Financial Services Group Inc. in Pittsburgh, who projected total starts would drop to an 895,000 pace. “The fact that single-family starts are up is very encouraging. It is more important to the economy in terms of employment and growth.”
Wholesale prices in the U.S. rose in January for the first time in four months, reflecting higher costs for food and pharmaceuticals, another report showed. The producer-price index climbed 0.2 percent after a 0.3 percent drop in December, the Labor Department reported.
If you’d like to discuss real estate matters, contact RLG founder Jordan Rose, jrose@roselawgroup.com
