On Tuesday, the Commerce Department reported that U.S. housing starts rose to a nearly 8-year high. Construction of new homes jumped 6.5% from August figures to a seasonally adjusted annual pace of 1.21 million units in September. This increase was bolstered by an 18.3% surge in multifamily units, though starts of single-family homes didn’t show as much strength, increasing only 0.3%. Stephen Phillips, president of Berkshire Hathaway HomeServices, weighed in on the latest figures:
“This is the new abnormal,” he said. “Starts are dominated by multifamily construction, which is notoriously volatile. Single family starts are slow, which is supportive of resale prices as the inventory shortage continues.”
STEPHEN PHILLIPS is the president of Berkshire Hathaway HomeServices and COO of HSF Affiliates LLC. Find him on Twitter @swphillips7.