New Home Construction Maintains Robust Pace In September

WASHINGTON D.C. ?EUR??,,????'??+ New home construction nationwide rebounded from the devastation of hurricanes Katrina and Rita to maintain a vigorous pace in September, according to a report released Wednesday by the Commerce Department.

Total housing starts increased 3.4 percent for the month to a seasonally adjusted annual rate of 2.108 million units following upward revisions to the July and August rates. The September construction pace was 10.3 percent above a year ago and remained above 2 million units for the sixth month in a row.

Single-family home construction rose 2.6 percent to a near-record pace of 1.747 million units for the month. This was 12.3 percent above the pace of a year ago.

?EUR??,,????'??Builders are operating at a very healthy pace and see little letup in the months ahead, despite the initial shock and economic uncertainties immediately following hurricanes Katrina and Rita,?EUR??,,????'?? said Dave Wilson, president of the National Association of Home Builders (NAHB).

Privately-owned housing completions in September were at a seasonally adjusted annual rate of 1.979 million. This is 3.2 percent above the revised August estimate of 1.917 million and is 10.9 percent above the September 2004 rate of 1.784 million. Single-family housing completions in September 2005 were at a rate of 1.680 million; this is 4.2 percent above the August figure of 1.612 million. The September rate for units in buildings with five units or more was 265,000.

Privately-owned housing units authorized by building permits in September were at a seasonally adjusted annual rate of 2.189 million. This is 2.4 percent above the revised August rate of 2.138 million and is 7.4 percent above the September 2004 estimate of 2.039 million. Single-family authorizations in September were at a rate of 1.749 million; this is 4.4 percent above the August figure of 1.676 million. Authorizations of units in buildings with five units or more were at a rate of 352,000 in September.

?EUR??,,????'??All the fundamentals remain in place and the overall housing market continues to exhibit ongoing strength,?EUR??,,????'?? said NAHB Chief Economist David Seiders. ?EUR??,,????'??Favorable mortgage rates as well as strong household income and job growth continue to bolster housing demand.?EUR??,,????'??

Starts rose in two of four regions. They increased 6.9 percent in the South to a 981,000-unit annual rate and 1.9 percent in the Midwest to a 368,000 pace. Starts were unchanged in both the Northeast and West at 198,000 and 561,000, respectively.