Construction of new homes rose by 5.9% in the U.S.
March 29, 2014
The pace of housing construction in the U.S. rose 5.9% in July and reached an annual rate of 896,000 units , reported the Commerce Department.
The pace of home construction in buildings with at least five homes increased 25.5 % while the works in single family homes decreased by 2.2 % , the report added .
In June, the pace of construction had reached 846,000 units per year and most analysts had estimated an annual rate of 915,000 units in July .
The housing construction data point to a sustained recovery in the housing market , and the beginning of work in the past month was 20.9 % above the same period in the previous year.
However, the construction sector is still far from the figures achieved during the housing boom that saw the construction of nearly 2.3 million homes in 2006.
Economists argue that the construction of about 1.7 million homes are needed each year to maintain the current inventory and meet the new demand .
In recent months some construction companies have reported difficulties in obtaining labor and supplies.
Building permits , which are an indicator of future activity , rose 2.7 % in July and reached an annual rate of 943,000 units , according to the government report .
Permits for the construction of buildings with at least five homes were up 13.5 % and permits for single-family homes fell by 1.9%.