The housing recovery was a key factor in the moderate economic growth seen in late February and March, the Federal Reserve reports.
Anecdotal evidence from the central bank’s 12 banking districts reveals that home construction is building momentum, creating more construction jobs and increasing factory output of housing-related goods such as lumber.
In the Kansas City district, the residential property market had stronger seasonal sales than normal. The residential real estate sector also strengthened in the New York and St. Louis districts; demand for homes increased in the San Francisco district; and sales of new and resale dwellings were up in the Atlanta district.
Residential construction activity was steady or modestly higher in the Chicago, Cleveland, and Philadelphia districts.
Source: “Housing and Auto Sales Lifted Economy, Fed Says,” The New York Times