In total, home builders began construction on a seasonally adjusted annual rate of 914,000 homes in May. That’s an improvement of 28.6 percent over the same time last year and a welcome sight after April’s fall gave many an uneasy feeling despite home starts reaching a level in March that had not been seen since the recession.
As has been the case for a few months now, apartment construction has dictated the momentum for home starts. After suffering a big drop in April, construction starts on apartments jumped 25 percent in May to a rate 306,000.
Meanwhile, construction starts on single-family homes rose 0.3 percent to a rate of 599,000.
The number of building permits issued in May fell 3.1 percent to a seasonally adjusted annual rate of 914,000. Since the same time last year, the annual rate of permits has risen 20.8 percent.
The number of homes completed in May fell 0.9 percent to a seasonally adjusted annual rate of 690,000 but is still 12.6 percent higher than the same time last year.