US housing starts up in September

The number of housing starts in the US rose sharply in September, the latest data shows.

Figures published by the US Department of Commerce revealed that privately-owned housing starts were up by 15 per cent compared to the previous month, while completions also increased by 2.1 per cent.

However, the number of building permits issued dropped by five per cent - although the government department pointed out that despite the monthly fall, this rate is still 5.7 per cent above that recorded in September 2010.

Speaking to AFP, chief US economist at High Frequency Economics Ian Shepherdson described the market for multi-family housing as "massively volatile".

He went on to comment that there are signs of a rebound in the US residential real estate sector, noting it is "presumably because of the sustained increase in demand for rental property in the face of the stagnant purchase market and tight mortgage lending conditions".
 

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