Why the Homebuilding Rebound Has Legs

A housing development in progress in Peoria, Ill. Photograph by Daniel Acker/Bloomberg

Homebuilding is gaining speed because there are shortages of housing in places like the Midwest and Plains states that have stronger job growth and relatively little excess housing stock. The U.S. Census Bureau on Oct. 17 reported a 15 percent jump in the seasonally adjusted annual rate of starts on construction of privately owned housing (PDF) for September, compared with the August rate. Bloomberg reports that the September rate was the highest in four years.

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