Page 10 - UTILITIES 19 AUG 2015
P. 10
U.S. NEWS A7
Wednesday 19 August 2015
US Financial Front:
Single-family houses fuel gains in US homebuilding in July
decreased 16.3 percent in permits still lags the surging
demand.
July to an annual rate of The National Association of
Home Builders/Wells Fargo
1.12 million, after achieving builder sentiment index
released Monday reached
an eight-year high in June. 61 this month, up from 60 in
July. Any reading above 50
The decrease likely reflects signals expansion.
Still, only 5.4 months’ supply
some pullback after months of new homes is available,
compared to six months in
of gains and was caused a healthy market.
In the rental sector, prices
primarily by a sharp plunge are increasing at double
the rate of hourly wage
in permits to construct growth largely because of
fewer vacant apartments
apartment complexes available. Home rental
prices are up 4.3 percent in
after a tax break expired in the past year, according to
the real estate firm Zillow.
New York. Average hourly earnings
have improved a mere 2.1
Homebuyers and renters percent.q
have crowded into the
housing market this year,
pushing up prices to levels
that have worsened
affordability and placed
a potential cap on sales
growth.
Builders have relieved some
of this financial pressure by
ramping up construction,
Construction workers continue their work in Scottsdale, Ariz. The Commerce Department released yet the increases in
housing starts for July on Tuesday, Aug. 18, 2015.
housing starts and building
(AP Photo/Ross D. Franklin)
JOSH BOAK economy is really hitting
AP Economics Writer stride when we see these
WASHINGTON (AP) — U.S. starts in the range of 1.5
builders started work on million.” Total housing starts
single-family houses last have risen 11.3 percent
month at the fastest pace year-to-date. The market
since the Great Recession is attracting more buyers
began in late 2007. and renters, as starts for
Housing starts in July rose apartment buildings have
0.2 percent to a seasonally climbed 12.2 percent so
adjusted annual rate of far this year despite last
1.21 million homes, the month’s drop.The improved
Commerce Department housing market has
said Tuesday. Construction already benefited sales at
of single-family houses supply stores such as Home
accounted for all of the Depot. The world’s largest
gains, shooting up 12.8 home improvement retailer
percent last month to reported Tuesday that sales
the highest rate since at U.S. stores open at least
December 2007. one year had climbed 5.7
The increase pointed to a percent during the second
housing market that has quarter, pushing its stock to
strengthened for much an all-time high of $123 in
of the year, reflecting morning trading.
an increased sense of But Tuesday’s report also
financial security for many showed the potential limits
Americans amid steady job of further gains from new
growth, modest layoffs and construction as the number
relatively low mortgage of building permits fell, a
rates. Continued gains in possible sign that demand
housing would help extend will need to continue
the current economic improving to further the
expansion. pace of homebuilding.
“More housing starts means “It is in all likelihood going
more construction jobs as to take another leg up in
well as confidence from new single-family home
real estate developers sales to sustain the pace
that people will be of single family starts that
buying,” said Tara Sinclair, was recorded in July,”
a George Washington said Joshua Shapiro, chief
University professor and U.S. economist at the
chief economist for job site consultancy MFR.
Indeed. “We’ll know the Approved building permits
