Housing starts in February fell 22.5 percent to an annual rate of 479,000 from the January rate of 618,000, according to the latest figures from the U.S. Department of Commerce. The current rate is 20.8 percent below the February 2010 rate of 605,000 units. Starts are now at the lowest level in nearly two years, and the latest month-to-month decline is the largest since March 1984. Meanwhile, single-family housing starts in February were at a rate of 375,000 units, or 11.8 percent below the January rate of 425,000.
"The decline in new construction and permits in February is the culmination of a great deal of nervousness that both builders and consumers are feeling right now," said Bob Nielsen, chairman of the National Association of Home Builders (NAHB). "In an already-fragile market where credit for building and buying homes remains extremely tight, additional concerns about energy costs, interest rates and other factors are contributing to an atmosphere in which many have adopted a very cautious stance."
