U.S. Housing Starts Rebounded in August, Outpacing Expectations
By Xavier Fontdegloria
Construction of new homes in the U.S. increased in August,
partly reversing July's decline, data from the Commerce Department
released Tuesday show. Here are the main takeaways from the
--Housing starts, a measure of U.S. homebuilding, rose 3.9% in
August compared with July, to a seasonally adjusted annual rate of
1.615 million. The reading topped the consensus forecast from The
Wall Street Journal poll of economists, who expected starts to
increase 1% to an annual pace of 1.55 million.
--The current level of starts is up 17.4% compared with the same
month a year earlier.
--In July, housing starts stood at a revised 1.554 million from
an earlier estimate of 1.534 million.
--Monthly housing starts data are volatile and are often
revised. August data came with a margin of error of 11.3 percentage
--Residential permits, which can be a bellwether for future home
construction, rose 6.0% in August on month, to a seasonally
adjusted annual rate of 1.728 million. The figure is above
economists' forecasts of a 2.1% decline to an annual pace of 1.60
--U.S. housing starts report for August compares with
September's indicator compiled by the National Association of Home
Builders, which showed confidence in the single-family housing
market recovering slightly from recent falls.
--Housing demand remains strong amid low mortgage rates but
labor and material shortages remain widespread, pushing up both
home prices and construction costs over the last year.
Write to Xavier Fontdegloria at firstname.lastname@example.org
(END) Dow Jones Newswires
September 21, 2021 09:00 ET (13:00 GMT)
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