Low interest rates, a federal tax credit and nice weather led to a surge in new house construction in the St. Louis region in March.

Permits to build single-family houses hit their highest one-month total in more than two years, according to the Home Builders Association of St. Louis.

There were 465 permits issued in seven Missouri counties, the most since Feb. 2008 and a 142 percent increase from the same month last year. Through the first three months of 2010, permits are up 58 percent from last year.

Much of the growth in single-family construction came in St. Charles, Warren and Franklin counties. Permits for multifamily rehabs in the city of St. Louis, which are counted separately, have more than tripled from last year’s pace.

It is unclear how long this building boomlet will last, however. The government’s $8,000 tax credit is set to expire at the end of April and many economists think interest rates will rise, prompting some concern about a second dip in the housing market.

Source: Tim Logan: tlogan@post-dispatch.com - April 21, 2010 Post Dispatch