U.S. home construction rebounded 4.3 per cent in May after steep declines caused by shutdowns due to the coronavirus.
The Commerce Department reported recently that new homes were started at a seasonally adjusted annual rate of 974,000 last month after steep declines in April and March.
Homebuilders are hoping that as the nation reopens, housing will post a strong recovery, helped by super-low mortgage rates. But some analysts caution that the fledgling rebound could be derailed if cases of the coronavirus spike again, causing potential buyers to put off looking for a new home.
Applications for building permits, a good indication of future activity, rose a sizable 14.4 per cent in May to an annual rate of 1.22 million units.
The report showed that construction of new single-family homes was up 5.4 per cent while construction of apartments with five units or more increased 16.9 per cent.
Construction was up in the Northeast and the West and down in the Midwest and South.