WASHINGTON Construction firms broke ground on more apartment complexes in September, pushing up the pace of U.S. homebuilding.

Housing starts rose 6.3 percent to a seasonally adjusted annual rate of 1.017 million homes, the Commerce Department said Friday. Almost all of the gains came from apartment construction a volatile category which increased 18.5 percent after plunging in August.

The sluggish recovery and meager wage growth has left more Americans renting instead of owning homes. Apartment construction has surged 30.3 percent over the past 12 months.

Starts for single-family houses rose just 1.1 percent in September, contributing to an 11 percent gain during the past 12 months.

Applications for building permits, a good sign of future activity, increased 1.5 percent to an annual rate of 1.018 million. That also reflected the strength in apartment building. Permits for multi-family buildings rose 7 percent in September, compared to a 0.5 percent drop in permits for single-family houses.

Other indicators reflect the continued to shift to rentals. The residential component of the American Institute of Architects billing index stood at 58.1 in August. That index is more heavily-weighted to multi-family housing and any reading above 50 signals growth.

Meanwhile, real estate sales have failed to get much traction in recent months. Price growth is slowing, yet the surge in home values through the middle of last year has made affordability a challenge for many would-be buyers. Homebuilders are also feeling slightly less optimistic.

The recent turmoil in the financial markets caused the average 30-year fixed mortgage rate to drop to a 52-week low of 3.97 percent. That should help spur some additional buying, but its unlikely to be enough to suddenly boost construction.

While the drop in mortgage rates likely will prompt stronger home sales by the turn of the year, we dont expect a significant upward trend in construction to re-emerge until next spring, said Ian Shepherdson, chief economist at Pantheon Macroeconomics.

Those increases are substantially larger than wage growth, which has barely exceeded inflation by increasing at roughly 2 percent a year. Without wages rising more strongly, it becomes difficult to save for a down payment and qualify for a mortgage.

Originally posted here:
Pace of rental construction swells

Published October 17, 2014

WASHINGTON Construction firms broke ground on more apartment complexes in September, pushing up the pace of U.S. homebuilding.

The Commerce Department says housing starts rose 6.3 percent to a seasonally adjusted annual rate of 1.017 million homes. Most of the gains came from apartment construction, which increased 18.5 percent after plunging in August.

The sluggish recovery and meager wage growth has left more Americans renting, instead of owning homes. Apartment construction has surged 30.3 percent over the past 12 months, although the pace is volatile from month to month.

Starts for single-family houses rose just 1.1 percent in September, contributing to an 11 percent gain during the past 12 months.

Applications for building permits, a good sign of future activity, increased 1.5 percent to an annual rate of 1.018 million.

Link:
US home construction rises 6.3 percent in September, fueled by building more apartments

WASHINGTON (MarketWatch) The pace of home construction climbed last month on a jump in apartment building, according to government data released Friday.

Construction started on new U.S. homes rose 6.3% in September, with the annual rate hitting 1.02 million, following a sizable August drop. Septembers starts rate matched the consensus forecast from economists polled by MarketWatch.

Signaling a continuation of the markets rebound, the pace of total home-building starts was up 17.8% from the year-earlier period. However, the starts rate is far below an average of 1.5 million over the 20 years leading up to a bubble peak.

Analysts warn against reading too much into a single months report. A confidence interval of plus or minus 9.3% for Septembers overall starts growth shows the government isnt sure whether the pace of construction rose or fell last month.

One factor that could help support the housing market a bit is the recent drop in mortgage rates, which makes loans cheaper for prospective borrowers. However, low mortgage rates alone wont be enough to spur more housing activity, experts say.

Rather, strong and consistent jobs growth is needed for a sustained pick up in home building and buying. Otherwise, the pace of the household formation will remain slow, with families and friends doubling up in homes to save money.

Apartments led construction growth in September, but economists prefer to see more building of single-family homes. Putting up a single-family homes costs more and creates more jobs than building one apartment. The construction pace for single-family homes rose 1.1% in September, while apartment starts in buildings with at least five units zoomed up 18.5%, the government reported.

The details of the construction data...dont make us feel any more positive about the single family segment of the housing market, which continues to plod along at a frustratingly slow pace, Richard Moody, chief economist at Regions Financial Corp., wrote in a research note.

For each apartment start during September in a building with at least five units, there were about 1.8 single-family-home starts. That ratio is far lower than a long-term average of about 3.4, and down from about 2.1 a year earlier. As home builders increasingly turn toward apartments, that will narrow the housing sectors contribution to the economy.

A gauge of the outlook for construction also showed more growth for apartments. The annual pace of permits for new construction, a sign of future demand, inched up 1.5% to 1.02 million in September from 1 million in August. Permits for single-family homes declined 0.5% in September, while permits in buildings with at least five units rose 7%.

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Economic Report: Apartments lead Septembers housing-starts growth

Housing construction picked up in September, buoyed by a surge in apartment-building.

Housing starts increased 6.3% from August, according to new figures from the Census Bureau, a pace a bit faster than analysts expected. That figure was driven by a 18.5% jump in starts for buildings with five or more units. Building permits an indicator of future construction were up 1.5% on the month.

Home builders say they're seeing increased demand as interest rates remain low and the economy gradually improves. Meanwhile, multifamily developers have been pushing to keep up with high demand for apartments as more households rent and more young adults are moving out on their own.

Year to date, apartment construction is up 22.7%, and completions of buildings with five or more units is up 43%. However, the new supply is having relatively little impact on rents, market-watchers say, as demand is growing nearly as fast.

September's growth was fastest in the West and the South.

Keep an eye on housing and real estate in Southern California. Follow me on Twitter at @bytimlogan

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Housing starts speed up in September, led by new apartments

Construction firms broke ground on more apartment complexes in September, pushing up the pace of U.S. homebuilding.

Housing starts rose 6.3 percent to a seasonally adjusted annual rate of 1.017 million homes, the Commerce Department said Friday. Almost all of the gains came from apartment construction a volatile category which increased 18.5 percent after plunging in August.

The sluggish recovery and meager wage growth has left more Americans renting instead of owning homes. Apartment construction has surged 30.3 percent over the past 12 months.

Starts for single-family houses rose just 1.1 percent in September, contributing to an 11 percent gain during the past 12 months.

Applications for building permits, a good sign of future activity, increased 1.5 percent to an annual rate of 1.018 million. That also reflected the strength in apartment building. Permits for multi-family buildings rose 7 percent in September, compared to a 0.5 percent drop in permits for single-family houses.

Other indicators reflect the continued to shift to rentals. The residential component of the American Institute of Architects billing index stood at 58.1 in August. That index is more heavily-weighted to multi-family housing and any reading above 50 signals growth.

Meanwhile, real estate sales have failed to get much traction in recent months. Price growth is slowing, yet the surge in home values through the middle of last year has made affordability a challenge for many would-be buyers. Homebuilders are also feeling slightly less optimistic.

The recent turmoil in the financial markets caused the average 30-year fixed mortgage rate to drop to a 52-week low of 3.97 percent. That should help spur some additional buying, but it's unlikely to be enough to suddenly boost construction.

"While the drop in mortgage rates likely will prompt stronger home sales by the turn of the year, we don't expect a significant upward trend in construction to re-emerge until next spring," said Ian Shepherdson, chief economist at Pantheon Macroeconomics.

Home prices rose 6.4 percent in August compared with a year ago, according to real estate data provider CoreLogic. This marks a substantial slowdown. Home values had chalked up annual gains of as much as 12 percent toward the end of last year.

Read the rest here:
Apartments Pushed up US Homebuilding in September

WASHINGTON (MarketWatch) -- Construction started on new U.S. homes rose 6.3% in September, bouncing up after a sizable August drop, led by growth for volatile apartment building, according to government data released Friday. The annual rate of total housing starts rose to 1.02 million last month, just about matching economists' consensus forecast, from 957,000 in August, the U.S. Commerce Department reported. The construction pace for single-family homes rose 1.1% in September, while apartment starts in buildings with at least five units zoomed up 18.5%. The pace of overall construction starts was up 17.8% from the year-earlier period, signaling a continuation of the market's rebound. The annual pace of permits for new construction, a sign of future demand, inched up 1.5% to 1.02 million in September from 1 million in August. Permits for single-family homes declined 0.5% in September, while permits in buildings with at least five units rose 7%. Economists caution over reading too much into a single monthly report. A confidence interval of plus or minus 9.3% for September's overall starts growth of 6.3% shows that the government isn't sure whether the pace of construction rose or fell last month.

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U.S. housing starts rise 6.3% in September

WASHINGTON - Construction firms broke ground on more apartment complexes in September, pushing up the pace of U.S. homebuilding.

Housing starts rose 6.3 percent to a seasonally adjusted annual rate of 1.017 million homes, the Commerce Department said Friday. Almost all of the gains came from apartment construction - a volatile category - which increased 18.5 percent after plunging in August.

The sluggish recovery and meager wage growth has left more Americans renting instead of owning homes. Apartment construction has surged 30.3 percent over the past 12 months.

Starts for single-family houses rose just 1.1 percent in September, contributing to an 11 percent gain during the past 12 months.

Applications for building permits, a good sign of future activity, increased 1.5 percent to an annual rate of 1.018 million. That also reflected the strength in apartment building. Permits for multi-family buildings rose 7 percent in September, compared to a 0.5 percent drop in permits for single-family houses.

Other indicators reflect the continued to shift to rentals. The residential component of the American Institute of Architects billing index stood at 58.1 in August. That index is more heavily-weighted to multi-family housing and any reading above 50 signals growth.

Meanwhile, real estate sales have failed to get much traction in recent months. Price growth is slowing, yet the surge in home values through the middle of last year has made affordability a challenge for many would-be buyers. Homebuilders are also feeling slightly less optimistic.

The recent turmoil in the financial markets caused the average 30-year fixed mortgage rate to drop to a 52-week low of 3.97 percent. That should help spur some additional buying, but it's unlikely to be enough to suddenly boost construction.

"While the drop in mortgage rates likely will prompt stronger home sales by the turn of the year, we don't expect a significant upward trend in construction to re-emerge until next spring," said Ian Shepherdson, chief economist at Pantheon Macroeconomics.

Home prices rose 6.4 percent in August compared with a year ago, according to real estate data provider CoreLogic. This marks a substantial slowdown. Home values had chalked up annual gains of as much as 12 percent toward the end of last year.

Go here to see the original:
Homebuilding gets a boost from apartment construction

Yale students will soon have new off-campus housing options when four upscale apartment units finish construction above the new art supply store Artist and Craftsman on Chapel Street, near the New Haven Green.

Pike International a major local real estate firm that owns off-campus buildings such as the Bakers Dozen house and the Mens Rowing house is funding the building of the apartments at 817 Chapel St. Project designer Fernando Pastor said this particular initiative is part of a larger series of refurbishments along the entire Ninth Square district the area along Chapel Street south of the New Haven Green. Pike has led the charge on many of these building renovations.

The whole fabric of the neighborhood is improving, said Barbara Hawes, assistant manager of Artist & Craftsman.

The space for the new apartments previously housed Karma, a nightclub, and Golden Rock, a pizzeria. After these two businesses closed, Pike acquired the property in 2012. While the building constructed in the 1940s will soon feature apartment units, Pastor stressed that the original faade and parts of the original ceiling and floor will be kept.

We use the bones of a historical building and make it modern, Pastor said. Because the building will be categorized as mixed use, Pastor said that the renovations will include new safety precautions.

Pastor said other developers had offered plans to tear down the building and put up a new five- to seven-story building. Pike instead plans to use the third floor of the building, which previously featured unused office space, to build the new apartment units. Pastor stressed that this particular project is not an example of gentrification, considering that the buildings were already abandoned.

Pastor said he instead sees the new developments as part of a recent nationwide trend of people migrating from the suburbs into the city to live closer to their workplace. He said these new apartments could potentially be attractive to Connecticut residents looking for a place in the Elm City.

According to Pastor, Yale undergraduates and some faculty members already occupy Pikes apartment units adjacent to 817 Chapel St. He added that he is confident that the company will soon find tenants for the new apartment building units. He noted that Pike generally does not experience difficulties filling its properties in New Haven which has a high occupancy rate of 98 percent.

Although Pike owns over 1,000 apartments in New Haven, making the company the citys largest residential apartment owner, Yale students who have lived in their buildings have reported poor customer service and management.

Sylvie McNamara 16, a Pike tenant last year, said she did not receive a single response from Pike after multiple requests to have her heater fixed in January.

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Pike to offer new Chapel St. apartments

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NEW YORK(CBSNewYork) An attack on a man inside his Brooklyn apartment building is being investigated as a possible hate crime.

Mitch Pope has five staples in his head after a being attacked by someone with a hammer. He told CBS 2s Emily Smith that a man followed him home and beat him while yelling gay slurs.

And then he was on top of me, hitting me with the hammer, and I was afraid for my life, so I started screaming and fighting back, Pope said.

It happened around 11 a.m. on Monday, in the lobby of Popes Crown Heights apartment building. Pope had just made his usual coffee stop, and planned to go back up to his apartment when he noticed someone following him.

Heavier guy , black with a scruffy beard, he had a skully on, and a brown hoodie, Pope said.

The building has a locked door with a buzzer system, but police said that the suspect followed the man right into the building and attacked him in the lobby.

At first Pope thought the attacker might have been a construction worker on the property for a recent project. The next thing he knew, he was being attacked and pushed down a set of stairs.

As WCBS 880s Alex Silverman reported, he had to get five staples in his head after the attack.

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Crown Heights Hammer Attack Being Investigated As Possible Hate Crime

By Carl Rotenberg crotenberg@21st-centurymedia.com

Council voted 4-1 for the tax abatement and deteriorated area designation after a brief public hearing. Councilman Sonya Sanders voted against the designation. Council members Marlon Millner and Linda Christian were absent for the vote.

The Local Economic Revitalization Tax Assistance Act (LERTA) zone designation will allow Westrum Development Company (WDC) of Fort Washington not to pay real estate taxes on a diminishing yearly schedule. The tax exemption contains a 100 percent tax abatement in the first year and a 10 percent abatement in the 10th year with 10 percent changes each year.

If the Luxor at Sandy Street project were developed without the LERTA public subsidy, annual tax revenue would be $280,000 for the Norristown Area School District, $110,000 for the Norristown municipality and $28,000 for Montgomery County. If the 10-year, LERTA tax abatement for 900 Sandy St. is adopted by all three taxing authorities, full tax revenue would be postponed to the 11th year.

The resolution adopted by council said the property abuts a property (770 Sandy St.) that contains an unsafe building built with a defective design, is vacant, and has been condemned as unsafe for human habitation by the municipality of Norristown and thus is considered a deteriorated area pursuant to Section 4725(a) of LERTA.

However, the building at 770 Sandy St. was vacant after Norristown condemned it in May 2010 under a court order. Nine condo owners and 15 renters were forced to vacate. The municipality repaired it for more than $3.4 million at taxpayer expense. Four condo owners resided in the repaired building after the first condemnation was lifted on Aug. 17, 2012, and until it was condemned for a second time in August, said Ryan Schofield, a 770 Sandy St. condominium owner who lived there before the first condemnation.

The 26-unit condo building at 770 Sandy St. has been vacant since the August condemnation, Schofield said.

In February, Norristown officials announced they would no longer pay the $40,000 annual cost for maintenance, electricity and repairs at the building after winning that right in Montgomery County Common Pleas Court.

John Westrum, chairman of WDC, said the mix of 113 one-bedroom units, eight studio apartments and 36 two-bedroom apartments at 900 Sandy St. would discourage rentals from families who children that would attend the Norristown Area School District.

The Lofts at Valley Forge in West Norriton has 388 units and six school-age children attending the district, Westrum said at an earlier council workshop meeting. Continued...

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Norristown council OKS tax abatement for apartment building