The pace of US housing starts was down 7% in February from the previous month as a slump in the multifamily sector overshadowed gains for single-family homes
The pace of US housing starts was down 7% in February from the previous month as a slump in the multifamily sector overshadowed gains for single-family homes.
The HUD and Commerce Dept. reported that overall housing production slipped to a seasonally-adjusted annual rate of 1.24 million units as multifamily dropped 26.1% (334,000 units) while single-family gained 2.9% (902,000).
“Some multifamily pullback is expected after an unusually strong January reading. Multifamily starts should continue to level off throughout the year,” said NAHB Chief Economist Robert Dietz. “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.”
Combined starts only increased in the Midwest (7.6%) while they declined in the West (-12.9%), the South (-7.3%) and the Northeast (-3.5%).
Again, multifamily was the drag, down 14.8% to 426,000 while single-family was down 0.6% to 872,000.
Permit issuance rose 12.7% in the Northeast and 3.4% in the Midwest but declined 3.4% in the West and 12.4% in the South.
First American Chief Economist Mark Fleming welcomed the extra supply.
“An estimated seasonally adjusted annualized rate of 1.32 million housing units were completed in February, a 7.8% increase from the January 2018 figure of 1.22 million – a modest step toward producing enough housing to meet market demand,” he said.
