SILVER SPRING, Md. —
Construction of U.S. homes jumped 17.3% in June as some states reopened, …
SILVER SPRING, Md. —
Construction of U. S. homes jumped 17.3% in June as some states reopened, but the pace still lags last year after this spring’s massive slowdown in building activity due to the coronavirus outbreak.
The Commerce Department reported Friday that new homes were started at a seasonally adjusted annual rate of 1,186,000 in June after a modest recovery in May followed steep declines in April and March. Even after a second straight month of increases, including an upward revision for May, construction activity remains 4% below last year’s pace.
Applications for building permits, a good indication of future activity, rose 2.1% to 1.24 million units.
It had been hoped that the lowest mortgage rates in five decades would drive a housing boom. However, surging infections in the South, typically one of the most active construction markets, has put new projects at risk.
For example, it wasn’t until June 26 that Florida closed its bars again after the state recorded a record 8,942 new cases of COVID-19.
