U.S. homebuilding increased in June 2020, by the most in nearly four years. Accelerated by rising demand for housing in suburbs and rural areas. The result, of employers allowing employees to work from home, rather than come to the office during the COVID-19 pandemic. However, homebuilding still remains -24.3% below its February 2020 level. Also, of note, most of June’s increases (75%) were in the South and West, the current epicenter of the U.S. COVID-19 pandemic and where further opening of the economy is now either being postponed or returned to previous lower levels. Nevertheless, single-family permits, for future homebuilding rose 11.8% in June to a rate of 834,000 units. This bodes well for housing starts in the months to come as permits turn into actual construction of homes.
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Flight to suburbs boosts U.S. homebuilding, but COVID-19 surge erodes consumer sentiment