Residential construction ended 2011 on a positive note with single-family housing starts rising in December for a third straight month at 4.4%, according to government figures released Thursday morning.
The Census Bureau reported that single-family housing starts rose to a 470,000 seasonally adjusted annual rate in December from a 450,000 rate in November.
Overall, single-family starts totaled 428,600 units in 2011, a 9% gain from 2010.
National Association of Home Builders Chief Economist David Crowe noted that builders are seeing greater interest among potential buyers who are becoming more optimistic about the outlook for 2012.
However, many builders still have major concerns including tight credit conditions, appraisals coming in at below construction cost, and a continuing flow of foreclosed properties hitting the market, Crowe said.
Multifamily construction outperformed in 2011 as starts jumped 60% from a year ago. But multifamily starts remain volatile. MF starts fell 27% in December to a 164,000 SAAR after spiking 30% in November.
