Privately owned housing starts saw a drop of 7 percent in February to a seasonally adjusted annual rate of 1.23 million units.
The estimate is down from 1.34 million in January and is 4 percent below last February’s annual rate of 1.28 million, according to the U.S. Census Bureau and the U.S. Department of Housing and Urban Development.
Despite the overall decline, single-family housing starts increased by 2.9 percent in February at a rate of 902,000.
The National Association of Home Builders attributed the decline to a 26 percent drop in multifamily production, which declined to an adjusted rate of 334,000.
“Some multifamily pullback is expected after an unusually strong January reading,” said NAHB Chief Economist Robert Dietz in a statement.
Regionally, overall housing starts fell 3.5 percent in the Northeast, 7.3 percent in the South and 12.9 percent in the West in February. Starts in the Midwest increased 7.6 percent in February.
Building permits likewise took a downward turn in February, falling 5.7 percent to a seasonally adjusted annual rate of 1.29 million. Permits for single-family homes were 0.6 percent below January’s estimates at a rate of 872,000.
Housing completions in February rose 7.8 percent in February to an adjusted annual rate of 1.3 million, up from January’s 1.22 million estimate.
