Data released by the U.S. Census Bureau on Tuesday showed that housing starts increased at a seasonally adjusted annual rate of 1.52 million units in February, 10.7% higher than in January.
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Single-family housing starts rebounded sharply in February, showing homebuilders are optimistic about spring market data Data released by the U.S. Census Bureau on Tuesday showed that
New data showed housing starts in February at a seasonally adjusted annual rate of 1,521,000 units, 10.7% higher than January and 5.9% higher than February 2023.
“Homebuilders continue to be bullish on the spring market as homeowners remain reluctant to list their homes and new homes make up a disproportionate share of active inventory,” Lisa Sturtevant, chief economist at Bright MLS, said in a statement. “Looking for Potential new construction homebuyers still find some builders offering deals, upgrades or favorable financing terms. But fewer builders are offering price reductions.”
The surge in new construction starts comes as homeowners remain constrained by low mortgage rates and are reluctant to list their homes.
The growth in new development was driven entirely by the construction of single-family homes, which increased 35.2% from the same period last year. By comparison, multifamily housing starts fell 35.9% annually. Stewart Vandt said a slowdown in multifamily construction could mean rent prices are about to rise sharply again.
“The slowdown in multifamily construction suggests we may start to see rents rise again,” Sturtevant said. “Last year, as a record number of new apartments entered the market, rents began to fall in some markets. But apartment construction may have peaked, which means rents may rise again this spring.”
The number of dwellings with building permits rose 1.9% in February from January to a seasonally adjusted 1,518,000 units, which is 2.4% higher than the figure recorded in February 2023.
The seasonally adjusted housing completion rate of 1,729,000 units was 19.7% higher than January’s estimate of 1,445,000 units and 9.6% higher than February 2023 levels.
Tuesday’s report is consistent with Monday’s National Association of Home Builders’ builder sentiment report, which showed builder sentiment in the single-family home market. Finally passed the breakeven point of 50 points, Express positive emotions.
“Solid level of “February’s single-family home production was closely tied to rising builder confidence, and mortgage rates are expected to ease further this year, which will provide additional support for single-family home construction,” said NAHB Chairman Carl Harris. driving force.”
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