While housing starts actually dropped in January, permits for future construction projects were at their highest level since June of 2008
Boston MA (PRWEB) February 23, 2013
LeaseQ, one of the leading providers of construction equipment leasing and financing in the United States, is reporting a jump in future home construction permits, to a 4 ½ year high. This is a leading indicator that the housing market remains on an upward track and good news for the construction industry.
Recent reports from industry leaders showed that while housing starts actually dropped in January, to an 890,000 unit annual rate, permits for future construction projects on residential homes were at their highest level since June of 2008. The drop in housing starts was attributed to an outsized gain in December and was confined to the Northeast and Midwest, suggesting that winter weather events and the aftermath of Superstorm Sandy may be prime contributors to the pull back.
"The fundamentals are there and the drivers are looking good," said Patrick Newport, an economist at IHS Global Insight in Lexington, Massachusetts. "We see more new construction this year. The only question is whether it will be in the multi-family or single-family segment."
In just a few short months, housing has gone from being a stifling headwind for the economy to becoming one of its strongest foundational supports, even with mortgage rates creeping higher over the last few weeks.
This is especially good news for the equipment leasing industry, since new construction activity means new equipment requirements. Equipment leasing has become the acquisition method for many due to the lower payments, less capital being expended up front, and the ability to trade up for newer and more advanced models as they become available.
Based in Boston MA, LeaseQ is one of the leading providers of construction equipment leasing and financing options in the country, with leasing plans designed to serve large and small businesses alike.