Housing starts in February fell 17 percent nationwide to a seasonally adjusted annual rate of 897,000 units, according to the U.S. Census.
The drop indicates “wavering” consumer confidence in the housing market and economy, said NAHB Chief Economist David Crowe in a statement.
"Buyers are waiting for a stronger, more reliable economy before making a home purchase, and builders are responding to their reluctance,” he said. “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 construction decreased 14.9 percent in February to a seasonally adjusted annual rate of 593,000, and multifamily starts went down 20.8 percent to 304,000 units.
All regions of the country saw decreases in both single-family and multifamily starts. The Northeast, Midwest, South and West showed declines of 56.5 percent, 37 percent, 2.5 percent and 18.2 percent, respectively.
