New home construction in the US increased in March 2011, but still lower than last year

By on Apr 20, 2011 in Business, Lifestyle, United States Comments

New home construction in the US increased in March 2011, as compared to February, but is still lower compared to March of last year.



US home construction file photo
Image Credit: FinancialPost.com

According to a pdf file report of the US Census Bureau and the Department of Housing and Urban Development released on Tuesday, April 19, 2011, new home construction in March 2011 was increased by 7.2 percent or a seasonally adjusted 549,000 units from 512, 000 units last February.

However, the March 2011 home construction data is 13.4 percent lower than the home construction data in March 2010 rate of 634,000 units.

“Despite continued volatility, today‚Äôs numbers show welcome growth within the housing market,” U.S. Commerce Secretary Gary Locke was quoted as saying about the report.

“With 230,000 private-sector jobs added in March in industries from manufacturing to education to construction, there are positive signs for widespread growth throughout the economy and a stronger housing market in the coming year.” Secretary Locke added.

The report, which can also be found at the US Commerce website, says housing building permit in March 2011 increased by 11.2 percent or a seasonally adjusted annual rate of 594,000 units from 534, 000 units last February.

But in a similar status of new home construction, March 2011 home building permits is still 13.3 behind the March 2010 estimate of 685,000 units.

Meanwhile, house completion in March 2011 is 14.2 percent lower than in February; from a seasoned annual rate of 593,000 units down to 509,000; and is 20.8 percent below the March 2010 rate of 643,000.

As noted at MarketWatch.com, experts say housing construction may still take several years to recover despite falling prices and low interest rates for those who are qualified to acquire housing loans.

Apparently, housing industry in the US depends on the employment rate in which more employed people means more people can afford to buy a new house.



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