Nationwide housing starts in January fell two percent to a seasonally adjusted annual rate of 1.065 million units. The decrease is largely the effect of a 22 percent drop in Midwest housing starts because of severe weather, according to a statement from the National Association of Home Builders.
Single-family housing production fell 6.7 percent to a seasonally adjusted annual rate of 678,000 in January. Meanwhile, multifamily starts increased 7.5 percent to 387,000 units.
The slowdown in January was not surprising because it came after a “strong” December for housing starts, said NAHB Chief Economist David Crowe in a statement.
Housing starts regionally saw a 6.5 percent increase in the South, and losses of 3.5 percent, 3.4 percent and 22.2 percent in the Northeast, West and Midwest.
Nationwide permit issuance was down 0.7 percent to a rate of 1.053 million. Single-family permits decreased 3.1 percent to a seasonally adjusted annual rate of 654,000 units and multifamily permits increased 3.6 percent to a rate of 399,000 units.
