After pausing at the start of 2013, homebuilding’s recovery resumed in the month of February. Compared to January, construction starts increased incrementally and permits authorizing future construction notched a solid increase. Compared to a year ago, starts and permits were up 24.3 percent and 27.7 percent respectively. Between 1992 and 2001, homebuilding’s generally upward trend was only occasionally (and briefly) interrupted. During that span, housing starts increased an average of 5 percent per year.
By Patrick J. O’Keefe, Director of Economic Research