NAHB clings to confidence over housing

Despite a double-digit decline in residential construction, the National Association of Home Builders remains confident that starts will grow along with an improving economy.

Nationwide housing starts dropped 17% to a seasonally adjusted annual rate of 897,000 units in February, according to the latest tally from the U.S. Commerce Department.

“This drop is not surprising based on our recent surveys, but our builders continue to show cautious optimism in the months ahead,” said NAHB Chairman Tom Woods, a home builder from Blue Springs, Missouri.

“February’s numbers indicate that wavering consumer confidence continues to impact the housing recovery,” said NAHB Chief Economist David Crowe. “Buyers are waiting for a stronger, more reliable economy before making a home purchase, and builders are responding to their reluctance. Even with this month’s drop in production, we expect the housing market to move forward this year in step with an improving economy.”

Single-family housing production fell 14.9% to a seasonally adjusted annual rate of 593,000 in February while multifamily starts dropped 20.8% to 304,000 units.

Combined single- and multifamily starts decreased in all regions of the country, with the Northeast, Midwest, South and West posting respective declines of 56.5%, 37%, 2.5% and 18.2%.