Housing Starts Up 6.8 Percent in May

Nationwide housing starts rose 6.8 percent to a seasonally adjusted annual rate of 914,000 units in May due primarily to increased production of multi-family homes, according to released data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.

“The outlook for housing continues to brighten as builders respond to increased demand for new homes and rental apartments,” said National Association of Home Builders (NAHB) Chairman Rick Judson, a home builder from Charlotte, N.C. “While challenges with regard to the cost and availability of building materials, lots and labor are still keeping the pace of improvement in check, both builders and consumers are more confident about their prospects in the current marketplace.”

While single-family housing starts held at a solid but virtually unchanged pace of 599,000 units in May, multi-family production bounced back from an over-correction in the previous month with a 21.6 percent gain to 315,000 units.