Construction of single-family homes in September surged by 7.8%, offsetting a 14.7% drop in the smaller apartment sector. Single-family construction is now at its highest level since 2007.
Construction was up in every region of the country except the Midwest which registered a 32.7% plunge. Construction surged 66.7% in the Northeast with smaller gains of 6.2% in the South and 1.4% in the West.
Economists believe home building will continue to thrive in the months ahead.
“Strong demand, low inventory and a record level of homebuilder confidence continue to support new home construction,” wrote Nancy Vanden Houten of Oxford Economics.
The National Association of Homebuilders reported Monday that its survey of builder confidence climbed to a new record high of 85 in October, up from a September reading of 83.