Bloomberg is reporting that New residential construction in the United States rose in April to the highest level in more than seven years. Housing starts surged 20.2 percent to 1.14 million annualized rate, the most since November 2007, from a 944,000 pace in March. More permits – a harbinger for future construction – were issued in April than at any time since June of 2008.
Analysts cited an improving labor market along with continued low mortgage costs as primary factors in the increase.
Of course, as the weather improves from a difficult winter, prospective buyers are driving up housing demand. Experts are confident the strong momentum will continue for the next several fiscal quarters.