iStock/Thinkstock(NEW YORK) — New home construction fell again in September to its lowest rate in 15 months, but that’s not all bad news.
According to the Department of Commerce, while there was a sharp drop in the number of multi-family homes being built, there was an eight percent gain in single family home construction. National Association of Homebuilders Chief Economist Robert Dietz says that rise in single family home starts is a good sign for the economy.
“As we see gains in single family construction the homebuilding component of the overall economy should grow and that should be good news in terms of economic output and job creation,” Dietz tells ABC News.
Since the September slump comes on the heels of a summer surge in multi-family home building, Dietz says the overall decline points to a market adjustment. But it may also just come down to demographics and shifting demand.
“Aging millennials, as they obtain careers are able to save for a down payment get married and have kids, there’s going to be an increasing demand for the single family side of the market,” Dietz says.
So while those numbers are down, Dietz advises not to let the bad news about the economy overshadow the good.
“Take it with a bit of a grain of salt,” he told ABC News. “On the single family side, it’s continued growth long trend.”
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