US home construction jumped by largest amount in 34 years
WASHINGTON — Builders broke ground on the most new homes in nine years last month, a response to strong demand that should lift the economy.
Home construction soared 25.5 per cent to a seasonally adjusted 1.3 million in October, the Commerce Department said Thursday . That is the biggest gain since July 1982. New construction is also at the highest level since August 2007, months before the Great Recession began.
Americans are clamouring to buy homes, but there are few properties on the market. That has driven up prices. Mortgage rates remain low, despite a big increase this week, making more homes affordable.
Steady hiring and some signs that pay gains are picking up have bolstered demand for housing. Younger Americans, buoyed by higher pay, are moving out on their own, renting apartments or seeking to buy houses. Sales of new and existing homes have picked up in recent months.