Released last Friday, housing starts showed an unexpected increase for the month of April. Housing starts are a good way for the market to determine how hot things are in new construction. Look further into the report however, and you’ll realize it’s not single family homes that have the numbers looking respectable.
Here’s the release from MarketWatch:
“U.S. home builders broke ground on 8.2% more homes in April, led by a 36% increase in multi-family units, the Commerce Department estimated Friday. Housing starts rose to a seasonally adjusted annual rate of 1.032 million, far more than the 954,000 estimated for March or the 939,000 expected by economists. Starts of single-family homes declined for the 12th straight month, falling 1.7% to a seasonally adjusted annual rate of 692,000, the lowest since January 1991. Building permits increased 4.9% in April to a seasonally adjusted annual rate of 978,000.”
The news isn’t ugly.. but it’s also not sexy either. Truth is, investors took action last month. Lumber costs are down and their money goes further right now. Specifically multifamily construction was up last month. Yes, it was up 36% after a 35% decline the month before. I think builders came out of the woodwork as costs of money came down and weather warmed up.
I personally have a client that is building investment properties as fast as his team can put them up. Opportunity is in the air. Are you taking action? Get in contact with a real estate professional that can help you find opportunities in today’s unique real estate market!
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I found your blog on MSN Search. Nice writing. I will check back to read more.
Eric Hundin