California Construction Soars to Fast Pace
Homebuilders in California ramped up construction to the fastest pace in nearly 7.5 years, finding newfound momentum for an economy that has struggled in the past few months. The Commerce Department stated Tuesday that housing starts last month increased 20.2% to a seasonally adjusted annual rate of 1.14 million homes. That pace ranks as the highest since 2007.
The sharp and rapid rebound in housing starts after disappointing data in February and March indicates that economic growth may accelerate in the second quarter. It also suggests that builders are responding to increased buyer demand and tight inventories of existing homes on the market due to a strong hiring rate over the past year and low mortgage rates.
Construction of single family homes rose 16.7% in April, while Multi-Family Construction shot up 31.9 percent. Employers added 223,000 jobs in April, causing the unemployment rate to slip to 5.4%, down from 5.5%. The economy has gained about 3.1 million new jobs-and paychecks-over the past 12 months. Why should you build with modular construction? Read the article: Basic Facts About Modular Homes