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What to Make of the March Increase in Building Permits Issued

Ricky Cove
What to Make of the March Increase in Building Permits Issued

The demand and supply conditions within the housing (REM) sector can be assessed by observing the changes in the number of building permits issued. An increase in the number of building permits in any given month is a signal of increased activity in the housing sector in the future, as construction (ITB) activity begins after a few months of the issuance of a permit. As per the March report, housing units (XHB) authorized by building permits were at a seasonally adjusted rate of 1.4 million, an increase of 2.5% from the revised February reading of 1.3 million units.