Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Housing News

Housing starts, permits rise as builders’ ability to borrow declines

According to U.S. Commerce Department data, total housing starts jumped 10.5% in August, putting new residential building back on pace to where it was prior to the close of the tax credit ending earlier this year. The news is mixed in that single family starts only rose 4.3% and is still 9.1% below August 2009. Multifamily however saw a substantial 32.2% uptick in starts.

Permits issued rose 1.8% in August, and according to the National Association of Home Builders (NAHB), builder sentiment remained unchanged in August. The lack of movement in the sentiment is likely in part to a rise in optimism about increasing starts yet a decline in the ability to obtain financing, leaving builders to remain cautious.

“The housing market has been in a holding pattern as the economy stalled in the second and third quarters. Construction activity returned to pre-home buyers tax credit levels in August as builders replaced sold single family homes and begin replenishing apartment building supply after a three year steady decline in multifamily construction,” said NAHB Chief Economist David Crowe.

“The vast majority of builders in this country operate small, single-family homebuilding firms and they are struggling to obtain acquisition, development and construction financing that will enable them to meet the current level of buyer demand and put more Americans back to work,” said Bob Jones, chairman of the National Association of Home Builders and a home builder from Bloomfield Hills, Michigan.

Although geographically, the Northeastern region slide a drastic 24.3%, the Midwest rose 21.7%, the South was up 7% and the West rose 34.3% in start volume. While the west saw a large rise in starts, it also had a 19% rise in permits issued, so this will certainly be a region to watch as it has quite a bit more activity currently than the others

Advertisement. Scroll to continue reading.

Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you'd like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.


Leave a Reply

Your email address will not be published. Required fields are marked *


American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.



Real Estate Technology

(TECH NEWS) It turns out that Internet of Things, like smart bulbs in homes, are not secure and give up your info - here...

Real Estate Marketing

(MARKETING) Your fancy, self-animating website might be making people violently ill, even if it is insanely beautiful. Sorry...

Real Estate Marketing

(MARKETING) Conduit is a CRM that does more than CRM, it analyzes your networking data to help you see how to improve your relationships.

Real Estate Corporate

(REAL ESTATE) Zillow has long been a data powerhouse, but a lawsuit about a $150M listing offers a look into listings claims.

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.