Business, Economics and Jobs

US housing growth jumps 15 percent in September


New figures from the Commerce Department showed that housing growth jumped 15 percent last month.


Paul J. Richards

US housing construction jumped 15 percent in September, the highest it has been in four years.

Commerce department figures show that home construction rose to an 872,000 annual rate, the fastest growth it has seen since July 2008.

The positive figures added to hope that the industry is coming back after the financial crisis.

Bloomberg reported that the growth may be sustainable given the rise in building permits.

The permits are a sign of future construction.

The Associated Press said the permits were up nearly 12 percent, the highest since July 2008.

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“It’s no longer a question of whether the industry is rebounding,” Larry Sorsby, chief financial officer of Red Bank, New Jersey-based Hovnanian Enterprises Inc. (HOV), told Bloomberg.

“There is clear evidence that we have bounced off the bottom and are in the midst of a recovery.”

The Wall Street Journal reported that builders are benefiting from the declines of foreclosed properties on the market, with just 14 percent of sales in September in that category.

That number was close to 50 percent in 2011.

The news also had knock on effects on other industries such as lumber.