IE Business Daily Business news for the Inland Empire.
National housing starts dropped 11.1 percent in May, but a surge in construction permits indicates that builders remain optimistic about the housing industry.
However, the number of permits issued last month rose 11.8 percent to 1.275 million, the highest level reached since August 2007, according to data released this week by the U.S. Department of Commerce and the Department of Housing and Urban Development.
The strong increase in permits issued means builders remain confident about the housing market’s immediate future and that more home construction is on the horizon, said David Crowe, chief economist with the National Home Builders Association in Washington, D.C.
“After a strong April, some readjustment in housing production in May was expected,” Crowe said in a statement. “The starts and permits figures for the second quarter of 2015 indicates are shaping up to be stronger than the first.”
Both housing sectors dropped in production between April and May: single-family starts fell 5.4 percent and multifamily fell 20.2 percent, according to the data.
