New Home Construction Rose 3.3 Percent in November

(CN) — Construction of new homes increased 3.3 percent in November, that to a marked uptick in the construction of single-family houses in the South and West, the Commerce Department said Tuesday.

According to the government, builders ground on homes last month at a seasonally adjusted annual rate of 1.3 million units — the fastest pace pace since September 2007.

The rebound in home construction is being driven by a shortage of existing properties being listed for sale.

In response, starts on new single-family houses have risen 8.7 percent so far this year.

The construction growth last month came from the South and West, while the Northeast and Midwest reported declines.

Last month, single-family home construction in the densely-populated South shot up 8.4 percent to the highest level since July 2007.

Single-family starts in the West increased 11.4 percent to their highest level since July 2007. They were unchanged in the Northeast and fell 11.1 percent in the Midwest.

Builders are also backing away from the apartment rentals that until recently were a driving force behind the rebound in residential construction.

Ground breakings for multi-family buildings such as apartment complexes have declined 8.5 percent year-to-date.

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