According to Commerce Department, U.S. home construction rose almost 2% in September. This is an increase on the heels of previous months that saw a significant decline in home construction.
The report gives Americans a little hope as the world closes out a distressing 2020.
The increase pushed home construction to a seasonally adjusted annual rate of 1.42 million homes after a 6.7% drop in August.
Applications for building permits rose 5.2% to 1.55 million units analysts say is a good sign.
The pandemic brought everything to a crawl last spring but ushered in very low mortgage rates to help spur the economy. Those rates remain low, giving homeowners the ability to take advantage now that pandemic fears may finally be waning.
Construction of single-family homes surged by 7.8% which helped offset a 14.7% drop in the smaller apartment sector. Data shows single-family construction is now at its highest level since 2007.
The Midwest is the only region not enjoying the resurgence, seeing a drop of nearly 33% in new home construction. The Northeast has seen a virtual explosion with an increase of nearly 67% in new construction. Increases in the South and West are in the single digits.
Economists believe home building will continue to thrive in the months ahead.
