US home starts gained to best rate since 2006 to close out the housing market's triumphant year
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Home starts in the US climbed in December to the fastest pace since 2006 as housing-market activity thrived into the new year.
New residential construction starts gained 5.8% to a seasonally adjusted annual rate of roughly 1.67 million units, according to Census Bureau data published Thursday. The rate sits 5.2% above the year-ago level. Economists surveyed by Bloomberg expected the rate to fall slightly to 1.56 million from November's revised level.
Single-family-unit starts rose 12% to a rate of 1.34 million. Starts for residences in buildings with five units or more fell 15.2% to a rate of 312,000.The Census Bureau's latest report suggests homebuilders are rushing to counteract the dwindling number of available units. And although apartment construction slowed through 2020 as Americans fled densely populated areas, recent developments stand to lift the lagging segment.
"The approval and administration of a number of vaccines and the prospects of reaching herd immunity by the middle of next year will likely be a boon to multifamily construction," Barclays economists said in a note. The housing sector's resilience should "make a strong contribution" to fourth-quarter economic growth, they added.Copyright © 2021. Times Internet Limited. All rights reserved.For reprint rights. Times Syndication Service.
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