Housing market supply crunch is pushing aspiring homeowners into new homes, boosting starts by 2.2% in April

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Housing market supply crunch is pushing aspiring homeowners into new homes, boosting starts by 2.2% in April
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U.S. housing starts rise 2.2% in April

The numbers: Construction on new homes rose 2.2% in April, as U.S. homebuilders continue to see strong demand from home buyers. Builders in the Midwest and West were particularly active this spring.

Housing starts rose to a 1.4 million annual pace last month from 1.37 million in March, the government said Wednesday, meaning that’s how many houses would be built over an entire year if construction took place at the same rate in every month as it did in April. Building permits, a key indicator of the pace of future construction, fell 1.5% to a 1.42 million rate.The decline was larger than expected.

Permits for single-family homes rose 3.1% in April while permits in buildings with at least five units fell by 9.7%. New listings of previously-owned homes are low, and buyers are seeing increasing competition, which is pricing some out.

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