Economics
U.S. Housing Starts Surge by Most Since 2016 and Permits Climb
- Big jump in permits points to sustained home construction
- Builder backlogs grow as homes not yet started increase
Photographer: George Frey/Bloomberg
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U.S. home construction starts increased in July by more than forecast and applications to build surged by the most in three decades, indicating builders are responding to robust housing demand fueled by record-low interest rates.
Residential starts jumped by 22.6%, the most since October 2016, to a 1.5 million annualized rate from a month earlier, according to a government report released Tuesday. That compared with the median forecast in a Bloomberg survey of 1.25 million and followed an upwardly revised 1.22 million in June.