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Multifamily Starts Jump Startling 51.3% In September

WASHINGTON, DC-National Association of Home Builders chief economist David Crowe tells GlobeSt.com’s Erika Morphy that the increase is a statistical bubble “not a construction one.”

By Erika Morphy | Updated on October 20, 2011

WASHINGTON, DC-Nationwide housing starts rose 15% to a seasonally adjusted annual rate of 658,000 units in September, according to US Commerce Department statistics. Driving this growth was the multifamily sector, which saw starts rise by 51.3% for the month. The jump raised concerns, at least at one analyst firm, BMO Capital. The firm foresees trouble with multifamily REITs because of the excess supply entering the pipeline, according to the Wall Street Journal.

However, National Association of Home Builders chief economist David Crowe thinks the jump is more of a statistical bubble than anything else. “It is definitely not a construction bubble,” he tells GlobeSt.com. “Multifamily starts were down significantly in August, so some of this increase in September is an adjustment to that.”

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