Construction starts on the rise again

U.S. home construction starts rose for a fourth straight month in December to the best pace since late 2006 as builders responded to the robust demand for single-family housing.

Residential starts climbed by 5.8 percent to a 1.67 million annualized rate, government data released Thursday showed. The figures are the latest sign of the housing market’s strong rebound.

Applications to build, a proxy for future construction, increased 4.5 percent in December to a 1.71 million annualized rate that also was the best since 2006.

The pandemic also has driven a surge in demand for larger properties with more space for families to work and learn at home.

The report showed singlefamily starts climbed 12 percent to a 1.34 million pace, another post-2006 high. Multifamily starts, which tend to be volatile and include apartment buildings and condominiums, eased to 331,000.

Housing has been one of the star performers this year even as the overall economy has been wracked by the spread of the coronavirus. Record-low mortgage rates and the migration of Americans to larger homes better suited for home offices during the pandemic has fueled demand.