Multifamily Market Drives New Home Construction Up in April
- May 16, 2008
Washington, D.C.–Giving hope to the industry, new home construction rose 8.2 percent last month–due mostly to multifamily housing, the Commerce Department said Friday.Single-family home groundbreakings fell to a 17-year low–dropping from seasonally-adjusted annual rate of 704,000 to 692,000, the New York Times said.Housing starts increased to a seasonally adjusted annual rate of 1.032 million. Multifamily unit construction skyrocketed 36 percent after a 35 percent decline in March. “The bump in starts owes entirely to multifamily dwellings,” Michael T. Darda of MKM Partners told the Times. Darda also said that the single-family results show that builders are removing supply from the market, which will eventually help correct the housing slump.Year-to-year comparisons painted a darker picture of the housing decline. Overall starts fell 30.6 percent compared to April 2007; permits plummeted 34.3 percent.