Housing Starts Jump 6.6% in April, Beating Median Forecast

The Commerce Department said Tuesday housing starts in the U.S. came in at an annual rate of 1.172 million in April, topping the estimate for 1.127 million. The government revised seasonally adjusted housing starts data from January 2014 through March this year.

“This month’s modest rise in housing production is consistent with builder sentiment, which has remained steady and in positive territory in recent months,” said NAHB Chairman Ed Brady, a home builder and developer from Bloomington, Ill.

In April, groundbreaking on single-family housing projects, which is the largest segment of the market, gained 3.3% to a 778,000-unit pace. Building permits, which are a sign of future activity, came in at 1.116 million, slightly less than the media forecast that called for 1.130 million. Combined single- and multifamily starts were mixed in April, increasing 22.2% in the Midwest and 14.1% in the South. The Northeast and West declined by 7.6% and 10%, respectively.

“Though housing construction data is relatively flat for the beginning of 2016, we anticipate a ramping up of housing production during the rest of the year, given a strengthening job market, low mortgage interest rates and favorable demographics,” said NAHB Chief Economist Robert Dietz.