Increases In U.S. Housing Construction

Posted On 23 May 2014
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The highest level in six months

The initiation of construction of U.S. homes in April reached its highest level in months, according to Commerce Department data published on Friday, accurate Agence France Press.

Meanwhile, Efe states that the pace of construction increased by 13.2% in April to stand at an annual rate of 1.07 million, the highest in six months.

In March, the annual rate of new housing construction was located at 947,000 units, according to official figures.

The April increase mainly due to a sharp rise in the beginning of new construction of apartment buildings, which rose 42.9% from the previous month.

Experts believe that the construction of apartments is more volatile than single-family home sector, whose early works rose just 0.8%, which has been interpreted as a sign that housing construction is earthbound firmly behind the recession that began in 2008.

Major advances in new construction of homes in April were for the states in the Midwest and Northeast of the country, which in recent months have been affected by a severe winter which slowed activity in the sector.

Meanwhile, permits for new construction handled last month increased eight percent, which predicts that the activity will gain momentum in the coming months.

The Federal Reserve keeps interest rates reference around 0.25 percent, despite which has not consolidated the sector due to the difficulties in getting funding families and the increase in housing prices, which seems to have anticipated the recovery itself.

A recent study by the U.S. Census Bureau showed that the percentage of homes owned by U.S. households stood at 64.8% in the first quarter, the lowest since 64.7 percent in 1995.

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