Single-Family Home Construction Up in September

Washington, DC, Oct. 19, 2010 -- Home construction increased slightly in September on the strength of single-family homes, according to the Commerce Department.

Construction of new homes and apartments rose 0.3% in September from a month earlier to a seasonally adjusted annual rate of 610,000, the Commerce Department said Tuesday. It was the strongest report on home construction since April.

Housing starts are up 28% from their bottom in April 2009 but are still down 73% from their January 2006 peak and 40% below the 1 million annual rate that analysts say is consistent with healthy housing markets.

August's figure was revised upward to an annual rate of 608,000 from an earlier estimate of 598,000.

Construction was driven by a 4.4% monthly increase in single-family homes, the second consecutive increase for this category, which represents about 80% of the market. Construction of condominiums and apartments fell by nearly 10%.

The number of building permits issued to build new homes fell 5.6% from a month earlier to a seasonally adjusted annual rate of 539,000. That drop, however, was driven by a 20% decline in those for condominiums and apartments. Permits for single-family homes rose 0.5%.