- Despite the 2.2% decline in July construction starts on single-family homes yesterday, some analysts contend that a pick-up is in the works for later this year. Why? - Building permits.
- The fact is that building permits issued for single-family homes are up 25.3% in the first seven months of this year, while, home starts are up only 20.1% in that span.
- As builders tend to start construction soon after receiving permits, it stands to reason that the growth in home starts will close the gap with permit growth.
- "The fact is that starts don't lag that far typically from permits," says Zelman & Associates Ivy Zelman. "So we think there should be a catch up."