Groundbreaking surged 15.7 percent last month to a seasonally adjusted annual 1.09-million unit pace, the Commerce Department said on Tuesday, snapping two straight months of declines.It is hard to get a good read on housing through one month's data. Calculated Risk has two good article on today's figures. The first, here, summarizes the housing report, and the second, here, gives more insight, and both articles put the housing figures into a wider context. After reading the two posts I am optimistic about housing's continued strength.
The data on multifamily starts and completions was interesting, especially after reading and posting Monogram Residential Trust's valuation assumptions yesterday. Calculated Risk has the following graph:
Multifamily construction starts are approaching levels not seen since the late 1980s. The added supply have to put pressure on cap rates and rental growth rates as multifamily owners compete with one another.