Housing starts up

Further proof that normalcy is almost, well, normal again: housing starts were up in August. The bulk of the 1.5% increase was due to new construction of apartments. Single family residences (i.e. not condos) were down for the first time in 6 months. Additionally building permits increased.

While this seems like a modest statistic, consider that it takes a huge initial investment on the part of a builder to build either apartments or houses. Often that investment is financed with debt. That debt is paid off by the eventual sale of the apartment or house. So what the housing starts number means is that confidence is returning to the construction industry, as well as indicating that lenders are starting to put their toes back into the lending waters.

Jason