Dive Brief:

• The number of residential construction loans increased 4.8% in the third quarter, marking the 14th-straight quarter of growth and the highest quarterly pace of gains since the summer of 2014, according to an analysis of Federal Deposit Insurance Corporation data by the National Association of Home Builders.

• Year-over-year, the number of residential loans are up 17.3% but are 66% off their first-quarter 2008 peak of $203.8 billion.

• An easing in lending and a pick-up in the loan base has helped boost residential construction activity despite tight inventory conditions.

Dive Insight:

Tough lending conditions in the acquisition, development and construction (AD&C) loans market has been a drag on growth in homebuilding. But the latest NAHB figures highlight a recent trend that is seeing lending standards ease, which is helping more projects come online.

Other stats back up the trend and point to a rise in residential construction starts, with recent Commerce Department data showing a 25.5% jump in October to a seasonally adjusted annual rate of 1.323 million starts, driven by an upswing in multifamily, compared with September’s upward-revised estimate of 1.054 million. The figure was up 23.3% on the year-ago period.

Meanwhile, building permit authorizations rose 0.3% from September to 1.229 million in October and were 4.6% ahead of the year-ago period, suggesting the demand pipeline is growing.

For more housing news, sign up for our daily residential construction newsletter.