The National Association of Home Builders (NAHB) has released a report indicating that housing starts increased 13.7% in October, a seasonally-adjusted annual rate of 1.29 million. This is the highest post-recession reading since October 2016, when the reading was 1.33 million.
Single-family starts increased 5.3%, 8.4% above last year’s rate, while multifamily starts jumped 36.8% (413,000 units).
Granger MacDonald, chairman of NAHB, said, “Aligned with our reports of strong builder confidence our members are optimistic about the future of the housing market, even as uncertainties remain and they continue to face supply-side issues.”
Asked about the Senate tax plan, MacDonald said, “Though NAHB believes the Senate tax legislation is better for the housing sector, like the House, it fails to provide a meaningful incentive for homeownership for the middle class. We will continue to work with Congress on tax policy and other areas to ensure that housing and homeownership remain a national priority. Enacting meaningful tax reform that will help the middle class and small businesses is vital to keep the housing market moving forward and to create job and economic growth.”
Granger referred in part to the House proposal for tax reform which removed a long-standing program for low- and middle-income home buyers that would allow first-time buyers to claim a portion of their mortgage interest as a tax credit.
The United States Census Bureau published its findings for privately-owned housing completions in October: 1,232,000. This represents at 11.7% increase over the October 2016 rate of 1,067,000.©Realtor Report. November 20, 2017.