Wednesday, October 17, 2012

Bloomberg Says Builders Started Most Homes in 4 Years

New-home construction in the U.S. probably rose in September to the highest level in four years, a sign the industry is in the initial stages of a recovery, economists said before a report today.

Builders broke ground on 770,000 houses at an annual rate, up from 750,000 starts in August and the most since October 2008, according to the median estimate of 80 economists surveyed by Bloomberg. Permits for new projects also probably increased.

A pickup in sales stoked by record-low mortgage rates and population growth combined with dwindling supply indicates construction can continue strengthening, contributing to economic growth. At the same time, housing starts are running at a quarter of their pre-recession peak, limiting how much the industry can boost the rate of expansion.

Read More from Bloomberg Businessweek

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