The Herald Bulletin

Afternoon Update

Breaking News

November 26, 2013

US home permits rise at five-year high on apartments

WASHINGTON — U.S. developers received approval in October to build apartments at the fastest pace in five years, a trend that could boost economic growth in the final three months of the year.

Permits to build houses and apartments were approved at a seasonally adjusted annual rate of 1.034 million, the Commerce Department said Tuesday. That's 6.2 percent higher than the September rate of 974,000 and the fastest since June 2008, just before the peak of the financial crisis.

Nearly all of the increase was for multi-family homes, a part of residential construction that reflects rentals and can be volatile from month to month. Those permits rose 15.3 percent to a rate of 414,000, also the fastest since June 2008. Plans for construction in the U.S. south drove much of the increase.

Permits for single-family houses, which make up roughly two-thirds of the market, rose 0.8 percent to a rate of 620,000. That's still slightly below the August pace of 627,000. And it suggests that higher prices and borrowing costs are weakening buyer demand.

Data on homes started in October and September were not included in Tuesday's report. Those figures have been delayed because of the government shutdown and will be released on Dec. 18 with the November home construction report.

The increase in permits suggests those figures will rise. And it indicates that "housing construction will make a much bigger contribution" to economic growth in the final quarter of the year, said Ian Shepherdson, chief economist at Pantheon Macroeconomics.

But the sales of single-family homes could soon slow in the coming months, if developers don't see greater demand soon, Shepherdson said.

"The flat trend in single-family is ominous," he said in a client note.

Construction of apartments has increased in the aftermath of the Great Recession, as the rate of homeownership has fallen from its 2006 peak of 69 percent to 64 percent. Lingering unemployment and stagnant incomes for millions of Americans have increased demand for rentals, which are at their lowest vacancy rates since early 2001.

Text Only
Breaking News
  • Costa Rica is demanding US explain 'Cuban Twitter'

    The Costa Rican government says it's still waiting for the Obama administration to explain why it launched the secret "Cuban Twitter" network from inside the Central American nation's borders despite warnings in 2009 that the plan could jeopardize the two countries' diplomatic relations.

    April 24, 2014

  • FDA proposes first regulations for e-cigarettes

    The federal government wants to ban sales of electronic cigarettes to minors and require approval for new products and health warning labels under regulations being proposed by the Food and Drug Administration.

    April 24, 2014

  • Singer Kenny Loggins set for Indiana GOP meeting

    Singer-songwriter Kenny Loggins is set to perform at the Indiana Republican Convention in Fort Wayne.

    April 24, 2014

  • Indiana cat missing 5 years reunited with owner

    A cat that went missing five years ago has been reunited with its owner in Indiana thanks to an implanted microchip.

    April 24, 2014

  • High court nixes $3.4M award to child porn victim

    The Supreme Court on Wednesday rejected a plea to make it easier for victims of child pornography to collect money from people who view their images online, throwing out a nearly $3.4 million judgment in favor of a woman whose childhood rape has been widely seen on the Internet. Two dissenting justices said Congress should change the law to benefit victims.

    April 24, 2014

  • Son eulogizes slain officer mother as 'amazing'

    An Indianapolis police officer slain by her ex-husband, a fellow officer who then killed himself, was eulogized by her son as the "most amazing person" at her funeral Wednesday.

    April 24, 2014

  • NWS - HB0424 - Rebecca Sperry - JC 1 Survivors of violent accident, mother and baby return home from hospital The past two and a half weeks of Rebecca Sperry's life have been a harrowing series of ups and downs.

    April 23, 2014 2 Photos

  • Reservoir opponents take message to Earth Day

    Opponents of a proposed reservoir in central Indiana hope to use this weekend's Earth Day festivals to spread the word about their concerns about the $350 million dam project, which would inundate part of a state park known for its ancient earthworks.

    April 23, 2014

  • Smoke leads to crash on Indiana 13 A girl was hit by a motorcycle, but not seriously injured, after smoke from a controlled burn limited visibility on Indiana 13 Wednesday afternoon.

    April 23, 2014

  • First lady announces one-stop job site for vets

    To help veterans leaving the military as it downsizes, the government on Wednesday started a one-stop job-shopping website for them to create resumes, connect with employers and become part of a database for companies to mine.

    April 23, 2014

Featured Ads
More Resources from The Herald Bulletin
AP Video
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Helium debate
Helium
Front page
Poll

Will you vote in the primary election on May 6?

Yes, on May 6
Yes, will vote early
No
     View Results