New Home Construction Falls In November

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New home construction fell in November, according to new estimates released by the U.S. Census Bureau and the Department of Housing and Urban Development. Despite the drop, however, an upward revision of October’s estimate means the overall trend in residential construction remains positive. In fact, the decline follows two months of significant gains, including a 6.3 percent increase in September and a 4.2 percent jump in October. Analysts forecast even further improvement in the next year, as job growth and wage increases are expected to boost the number of young buyers entering the housing market. In November, however, housing starts – which refer to the number of new homes that broke ground during the month – were down 1.6 percent. Building permits also fell from October, dropping 5.2 percent. The decrease in the number of building permits – which are a forward-looking indicator of future housing construction – was mostly due to an 11 percent decline in multi-family permits. Single-family authorizations to build new homes, on the other hand, slipped just 1.2 percent from the month before. More here.

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