Housing Starts Surge 6.3% in January

The number of new homes being built in the United States exceeded analysts’ expectations in January, jumping 6.3% to an annual rate of 1.678 million, the Department of Commerce reported Tuesday.

Home construction bolsters several sectors of the trucking industry. Flatbed trucking sees a boost from hauling building materials, while the dry van freight sector sees a boost from hauling appliances and furniture for these houses.

The housing sector has been one of the few areas where growth has continued despite the recession, Bloomberg said.

The rate of new construction was the strongest since Feb. 2000 when housing starts were on a 1.745 million annual pace, the Commerce Department said.

Analysts had been projecting a rise to a 1.6 million annual rate, Bloomberg said.

Industry watchers said that lower mortgage rates have been driving demand for housing that demand should remain high for the next few months.

December’s housing figures were revised to 1.579 million-unit pace.

For the start of each new year for the last decade, the Commerce Dept. said that housing starts averaged 1.43 million homes.

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