U.S. housing starts likely to have risen in April, expected to grow 7.3 pct in 2017 – Wells Fargo

Home building in the U.S. got off to a strong start in 2017, owing to the unseasonably mild winter weather in the initial two months of the year. The relatively favourable building conditions permitted additional construction activity to start earlier in 2017, with housing starts through the first three months of the year rising 8.1 percent year-on-year.

Apartment construction considerably contributed to the rise as starts of five units or more are up 14.1 percent year-on-year, stated Wells Fargo in a research report. Single-family housing starts rose modestly by 5.9 percent in the same period.

“We look for housing starts to recoup most of March’s decline and rise to a 1.257 million-unit annual rate in April”, said Wells Fargo.

While the mild winter weather possibly pulled some building activity forward into the first quarter, housing starts are likely to continue rising. They are expected to expand 7.3 percent in 2017, with virtually being entirely driven by single-family construction, added Wells Fargo.