U.S. Housing Starts Up 10 Percent in November

Home construction rose with enthusiasm last month across the U.S. as builders broke ground at a rate that would, if maintained, lead to an annual total of 1.173 million units. That surge in building was up 10.5% from a month earlier, the U.S. Commerce Department said.

The smaller category of single-family housing starts picked up at roughly the same pace, and were measured at a rate of 768,000 per year.

Strength in new home construction is a major leading indicator for positive growth in the pool and spa market.

According to a report in the Wall Street Journal: The across-the-board gains suggest builders are gaining confidence that home sales will remain steady, if not robust, over the next year despite the likelihood that the Federal Reserve will raise interest rates at its policy meeting Wednesday. Mortgage rates could eventually rise as a result but are expected to remain at historically low levels for a while.

“There is a great deal of pent-up demand for housing,” PNC senior economist Gus Faucher said in a note to clients. “With steady job growth of around 200,000 per month, a falling unemployment rate, rising wages, very low mortgage rates, rising household formations, and better access to credit, demand for new homes is steadily improving.”

Pool builders are hopeful the new year will bring further increases in home construction activity, and the opportunities they present.