Housing starts slide in February
Housing starts for February fell 7% to a seasonally adjusted rate of 1.24 million units below the revised January estimate of 1,329,000, according to the Commerce Department.
The latest report is also 4% below the February 2017 rate of 1.3 million units.
Although single-family starts posted a 2.9% gain to 902,000 units, multifamily starts dropped by 26.1% to a seasonally adjusted annual rate of 334,000 units.
Regionally, combined single- and multifamily housing production increased 7.6% in the Midwest but fell 3.5% in the Northeast, 7.3% in the South, and 12.9% in the West.
Weakness in multi-family pushed overall permit issuance down 5.7% in February to a seasonally adjusted annual rate of 1.3 million units. Multifamily permits fell 14.8% to 426,000 while single-family permits were essentially unchanged, edging down 0.6% to 872,000.
Permits increased 12.7% percent in the Northeast and 3.4% in the Midwest but decreased 3.4% in the West and 12.4% in the South.
“The uptick in single-family production is consistent with our builder confidence readings, which have been in the 70s for four consecutive months,” NAHB chairman Randy Noel said in response to the latest report.
“However, builders must manage rising construction costs to keep home prices competitive,” added Noel, who is also a home builder in Louisiana.
According to NAHB Chief Economist Robert Dietz, “Some multifamily pullback is expected after an unusually strong January reading.”
“Multifamily starts should continue to level off throughout the year,” Dietz said. “Meanwhile, the growth in single-family production is in line with our 2018 forecast for gradual, modest strengthening in this sector of the housing market.”
The latest report is also 4% below the February 2017 rate of 1.3 million units.
Although single-family starts posted a 2.9% gain to 902,000 units, multifamily starts dropped by 26.1% to a seasonally adjusted annual rate of 334,000 units.
Regionally, combined single- and multifamily housing production increased 7.6% in the Midwest but fell 3.5% in the Northeast, 7.3% in the South, and 12.9% in the West.
Weakness in multi-family pushed overall permit issuance down 5.7% in February to a seasonally adjusted annual rate of 1.3 million units. Multifamily permits fell 14.8% to 426,000 while single-family permits were essentially unchanged, edging down 0.6% to 872,000.
Permits increased 12.7% percent in the Northeast and 3.4% in the Midwest but decreased 3.4% in the West and 12.4% in the South.
“The uptick in single-family production is consistent with our builder confidence readings, which have been in the 70s for four consecutive months,” NAHB chairman Randy Noel said in response to the latest report.
“However, builders must manage rising construction costs to keep home prices competitive,” added Noel, who is also a home builder in Louisiana.
According to NAHB Chief Economist Robert Dietz, “Some multifamily pullback is expected after an unusually strong January reading.”
“Multifamily starts should continue to level off throughout the year,” Dietz said. “Meanwhile, the growth in single-family production is in line with our 2018 forecast for gradual, modest strengthening in this sector of the housing market.”