From CNN:
Initial construction of U.S. homes rose unexpectedly in April, but the
all-important single-family housing start measure fell to another 17-year low,
according to a government report released Friday.
Privately owned housing starts rose to a seasonally adjusted annual rate of 1,032,000 in April, according to the Commerce Department. The rate was up 8.2% from March’s revised reading of 954,000 but 30.6% lower than April of 2007.
and:
Total housing starts got a boost from multi-family homes. Buildings with
five or more units rose 7.3% to a seasonally adjusted rate of 294,000, and homes
with two to four units rose 2.7% to 38,000.
and:
Construction of new single-family homes registered the lowest reading of
that measure since January 1991. Single-family housing starts were at a rate of
692,000 in April, 1.7% below March’s number. Single-family homes are considered
the core of the housing market.
Applications for building permits, however, rose to a seasonally adjusted annual rate of 978,000 last month. That’s 4.9% above the revised 932,000 rate in March. Economists were expecting permit applications to fall to 912,000.
That’s encouraging news for homebuilders, because building permits are considered a reliable sign of future construction activity. Single-family housing permits rose 4% to 646,000 in April, and multi-family homes rose 7.3% to 294,000.
With the number of homes under construction declining, and the numbers of apartments increasing, one can expect that there will be a more and more renters in the near future.
Photo: FOR RENT -- Snowbank!, originally uploaded by DavyRocket.