By Erin Carlyle
Groundbreakings on new homes surged 26.6% and permits to build new homes rose 30% in June compared to one year ago, the U.S. Commerce Department said Friday. Housing starts (groundbreakings) and permits each reached eight-year highs, with both metrics rising on the strength of multi-family housing.
Housing starts stood at a seasonally adjusted, annual rate of 1.174 million in June. That’s 9.8% higher than the revised May estimate of 1.069 million, and significantly up from June 2014′s rate of 927,000. Single-family housing starts in June were at a (seasonally adjusted, annual) rate of 685,000, down 0.9% from May’s revised figure of 691,000. Starts on buildings with five or more units shot up by 28.6% in June, to a (seasonally adjusted, annual) rate of 476,000.