Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, March 18, 1992 TAG: 9203180071
SECTION: BUSINESS PAGE: A-7 EDITION: METRO
SOURCE: Associated Press
DATELINE: WASHINGTON LENGTH: Medium
The Commerce Department said builders started construction of single-family homes and apartments at a seasonally adjusted annual rate of 1.30 million units, the highest level in almost two years.
Not since March 1990 have builders been as active. The increase of 9.6 percent was the biggest jump in a year and followed a healthy 6.4 percent gain in January, revised up from a previous estimate of 5.5 percent.
The February gain was likely to reassure analysts who are looking for strength in housing to help shore up the recovery from the recession that began in July 1990.
Last year housing starts totaled 1.01 million units, down 14.9 percent from 1990 and the worst since 1946.
For the first two months of this year, starts are 37.6 percent higher than 1991.
James Buck, president of the Home Builders Association, Roanoke Region, said there is a significant increase in the number of single-family building permits.
"Looks like you can smell spring in the air," he said. "It's not a super rocket, but you're going to see a pretty good incline from here on out."
Roanoke-area housing starts are reported quarterly. The most recent figures show that at the end of 1991 there were 34 single-family dwellings and two multifamily units begun in Roanoke, 106 houses and four multifamily units in Roanoke County, 16 houses and four multifamily units in Salem and 40 single-family houses in Botetourt County.
Despite a decline in permits from the third quarter, Buck said people are more optimistic about building and aren't going to wait for politicians to stimulate the economy with legislation.
"People are looking to get things started," he said, "and they're doing it" by building and renovating homes.
The rise has occurred even though mortgage rates, which hit an 18-year low in early January, have edged up since by as much as a half-percentage point.
Nationally, all of the February gain came in single-family home starts. They jumped 14.7 percent to 1.15 million units, the highest since January 1989. That followed a 2.8 percent increase in January.
Apartment construction, which is highly volatile from month to month, fell 17.3 percent in February to 158,000 units after rising 30.8 percent in January.
Business writer Charlyne McWilliams contributed to this story.
by CNB