The Wall Street Journal reported that September saw a surge in multifamily construction; it increased 18.3%. Single-family construction rose .3%, totalling the residential construction rise to 6.5%.
"The underlying story is that housing demand is quite strong, and builders are slowly but surly ramping up their groundbreaking to meet the need," said Stephen Stanley, Chief Economist at Amherst Pierpont Securities.
Builders are gaining confidence in the return of the housing market due to the stronger job market, higher rental costs, and the continuation of low interest rates from the Federal Reserve. However, labor shortages are making the construction boom difficult.
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