Us house construction hit seven-year high

Condos being built in Brooklyn, New York Photo: Michael Tapp

Construction of homes in the US hit a seven-year high in April 2015, as the sector builds momentum.

Privately-owned housing units climbed to a seasonally adjusted annual rate of 1.14 million, 6.4 per cent higher than a year ago and the best rate recorded since 2007.

Privately-owned housing starts in April were at a seasonally adjusted annual rate of 1.135 million, 20.2 per cent above the revised March estimate of 944,000 and 9.2 per cent above the April 2014 rate of 1.039 million.

Single-family housing starts in April were at a rate of 733,000, 16.7 per cent above the revised March figure of 628,000. The April rate for units in buildings with five units or more was 389,000.

Privately-owned housing completions in April were also higher than last year, reaching a seasonally adjusted annual rate of 986,000, 19.4 per cent up from April 2014.

"Housing demand is clearly picking up," David Sloan, a senior economist at 4Cast Inc. in New York, tells Bloomberg, as the slowdown during early 2015 is attributed to the bleak winter weather.

"Housing should show quite strong momentum over the next few quarters. Permits also suggest solid underlying demand," Sloan adds.