US home construction rises 6.8 per cent in May to an annual rate of 914,000, but permits fall

WASHINGTON – U.S. builders began construction on more single-family homes and apartments in May, encouraged by more buyers and a scarcity of houses for sale.

The Commerce Department says builders increased housing starts 6.8 per cent last month to a seasonally adjusted annual rate of 914,000. That followed a 14.8 per cent decline in April. Housing starts are still below March’s pace of more than 1 million — the highest in five years.

Applications for building permits fell 3.1 per cent in May to a seasonally adjusted 974,000. That’s still close to the five-year high hit in April.

Single-family home construction rose 0.3 per cent last month. That followed two months of declines. Apartment construction, which is more volatile, surged 21.6 per cent after a big drop in April.

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Martin Crutsinger

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