Us construction rises again as confidence builds

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

US home construction is rising, according to new figures, as confidence among builders also increases.

Figures from the US Commerce Department, published this week, show that housing starts across North America rose 2 per cent to a seasonally adjusted 926,000 units in March 2015. Single-family production jumped 4.4 per cent, ahead of multi-family starts (up 2.5 per cent).

The increase was led by the Northeast and Midwest, with respective gains of 114.9 per cent and 31.3 per cent, but construction levels slipped 3.5 per cent  and 19.3 per cent in the South and West respectively.

"The housing industry continues to make gains at a gradual pace," says NAHB Chairman Tom Woods, a home builder from Blue Springs, Mo. "There are still some price sensitive buyers who remain on the fence."

March's figures follow a significant monthly decline of 15.3 per cent in February 2015, indicating the uneven progress the building sector is making, as the country's economy recovers. Despite this, though, builder confidence in the market for newly built, single-family homes in April is improving, according to the National Association of House Builders.

The NAHB / Wells Fargo Housing Market Index rose four points to a level of 56 in April to its highest level of 2015 so far, indicating a positive outlook for the US housing market in the coming year.

"As the spring buying season gets underway, home builders are confident that current low interest rates and continued job growth will draw consumers to the market," says NAHB Chairman Tom Woods, a home builder from Blue Springs, Mo. 

Builder perceptions of current single-family home sales, sales expectations for the next six months and reported traffic of prospective buyers all registered in April.

"Builders are being careful not to add inventory beyond expected demand, especially as they struggle with increasing costs for lots, labor and materials," adds NAHB Chief Economist David Crowe.

"However, pent-up demand, low mortgage interest rates and a growing economy should keep the housing industry moving forward throughout the rest of the year."