WASHINGTON–New numbers related to construction in the U.S. and released by the Commerce Department show a robust topline number, but could reveal some deeper trends related to home ownership in the country.
Overall, construction during April recovered from a decline in March with housing starts up 6.6% to an annual pace of 1.17 million. But other Commerce Department data show most of that activity was in apartments, condos and other buildings typically occupied by renters. Construction of those buildings was up 10.7%, while single-family home starts was up just 3.3%.
Analysts have been suggesting that many Millennials are having difficulty both paying high rents and saving enough for a 20% downpayment.
The Commerce Department data also show that permits for new construction, a sign of future demand, rose just 3.6%, which is 5.3% below the same date one year earlier.