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NEW HOME CONSTRUCTION HITS RECORD IN '03
| New home construction increased 8.4 percent to 1.848 million units in 2003 compared to 2002, their highest level in 25 years, according to a U.S. Dept. of Commerce report released today. December housing starts increased 1.7 percent to a seasonally adjusted annual rate of 2.088 million units compared to November. "Builders completed an extraordinary year and remain upbeat about the strength of the market for the year ahead," said Kent Conine, president of the National Association of Home Builders (NAHB). "Builders continue to meet a robust demand fueled by low interest rates and solid house-price performance." Single-family starts increased 13.6 percent over the year before to a seasonally adjusted annual rate of 1.664 million units, 0.6 percent below November's record high. The seasonally adjusted rate for multifamily housing in December was 424,000 units, 20.1 percent above the pace of a year ago and 11.6 percent above November's pace. "The strength in housing in 2003 was concentrated in single-family unit starts, while condominium units in multifamily structures gained ground as the year progressed," said NAHB Chief Economist David Seiders. "As a result, the homeownership rate rose to record levels in 2003." The pace of construction of new homes and apartments was mixed across all regions in December, with decreases posted in the Northeast and Midwest while the South and West posted gains. For the year as a whole, the Northeast, Midwest, South, and West were up 3.8 percent, 6.6 percent, 7.2 percent, and 13.9 percent respectively, according to the report |