Nationwide housing starts in March rose 2 percent to a seasonally adjusted annual rate of 926,000 units from February’s 897,000 units, according to the U.S. Commerce Department.
Single-family production increased 4.4 percent to a seasonally adjusted annual rate of 618,000 units in March. Meanwhile, multifamily starts fell 2.5 percent to 308,000 units.
The Northeast and Midwest saw combined single- and multifamily starts increase 114.9 percent and 31.3 percent, respectively. Housing starts dropped 3.5 percent in the South and 19.3 percent in the West.
"Builders are being careful not to add inventory beyond expected demand, especially as they struggle with increasing costs for lots, labor and materials," said David Crowe, chief economist for the National Association of Home Builders, in a statement. "However, pent-up demand, low mortgage interest rates and a growing economy should keep the housing industry moving forward throughout the rest of the year."
