Housing permits for home construction reached a
five-and-a-half-year high in October, signaling a strong uprise in new-home
construction, the Census Bureau reports.
Led by a big jump in multifamily permits, overall building
permits surged 6.2 percent in October to a seasonally adjusted annual rate of
1.03 million units. That marks the highest level since June 2008. Permits
typically lead housing starts by at least a month.
Housing permits are up 13.9 percent from year ago levels.
Permits for multifamily homes -- buildings with five units
or more -- posted a double-digit increase in October of 15.3 percent in
October, following a 20.1 percent increase
in September too.
Single-family home permits -- which make up the largest part
of the market -- rose 0.8 percent, following a 1.9 percent drop in September.
Housing permits in the West and South posted some of the
strongest gains with permits rising to the highest levels in those regions
since January 2008. Permits fell in the Midwest and stayed flat in the
Northeast.
"Permits are often a harbinger of future housing
activity and the strong showing in the multifamily sector along with stable
numbers on the single-family side bode well for a continuing, gradual upturn in
housing over the coming months," says Robert Denk, a senior economist with
the National Association of Home Builders. "But consumer and builder
confidence could be seriously undermined unless policymakers make progress over
looming budget, tax and economic policy issues in the weeks and months
ahead."
