Builders in the U.S. began work on more homes in November for the first time in three months, showing the industry is struggling to recover.
Housing starts rose to a 555,000 annual rate, up 3.9% from October’s 534,000 pace that was higher than initially estimated, Commerce Department figures showed today in Washington. The median estimate in a Bloomberg News survey called for a 550,000 pace. Building permits, a proxy of future work, fell, reflecting a drop in applications for multifamily projects.
Companies like Toll Brothers Inc. anticipate the industry that triggered the worst recession since the 1930s will regain its footing in coming months after the end of a tax credit caused demand to slump. While low borrowing costs and prices may help entice buyers, mounting foreclosures and unemployment near 10 percent mean housing will take years to fully rebound.
The median forecast was based on a survey of 76 economists. Estimates ranged from 520,000 to 595,000.
Permits dropped 4% to a 530,000 annual rate, the lowest level since April 2009. They were projected to climb to a 560,000 annual rate, according to the survey median.
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