Here’s some refreshing news on the housing starts front: You probably can’t remember the last time housing starts led the tape, but a lot of the big names are actually up 5 to 8 percent this week. The number of housing starts is currently at the highest point since April 2010, exceeding expectations with 685,000 starts on record.
The majority of the increase can be attributed to the 25 percent rise in multifamily construction. This is due largely to the rising demand for rental units. While the last decade has favored single-family homes, the trend appears to be steadily reversing.
Job losses and income decreases have resulted in high foreclosure rates, forcing many American families into rentals. In addition, strict credit restrictions have barred many families from jumping into the home ownership arena. But good news for aspiring homeowners because HARP got an appealing makeover just in time for 2012.