In a sign that the national housing market is on the rebound in a big way, the New York Times has reported that home construction starts in the United States rose by 6.8 percent in May. This is the fastest pace at which construction companies have either started, or applied for permits on, single-family home developments in five years. This news shows that not only is the housing market returning to strength, but continues to drive growth in the economy.
The U.S. Commerce Department announced on Tuesday, June 18, that this increase brought home construction starts to an adjusted annual rate of 914,000, just short of March's rate of a million but an incredible spike that offset April's 14.8 percent drop. While the bulk of this construction is for single-family homes – appropriate, as these houses make up approximately two-thirds of the market – they also included permits for apartments and condominiums.
"Starts have clearly been trending up," remarked Jim F. O'Sullivan, the chief United States economist for High Frequency Economics, according to the Times. "While levels are still low, housing has been the strongest part of the economy in growth terms."
The higher rate of construction starts and permit applications is a clear indicator that home construction is set to increase in the coming months. New-home construction overall has been up 28.6 percent since May of 2012, and that increase over the past year demonstrates that the economy's recovery has become sustainable.
With the housing market having stabilized and growing stronger, now is the time to take advantage of these fruitful real estate opportunities. Rehoboth Beach has a number of incredible, one-of-a-kind properties for sale either a short distance from, or located in, this nationally famous summer destination spot. To learn more, speak with a Rehoboth Beach real estate specialist today.
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