Housing starts increased 6.8% in February from January to 1.769 million, the U.S. Census Bureau reported.
Compared with February 2021, the rate surged 22.3%. It was the best pace for apartment construction since prior to the pandemic in January 2020, according to the National Association of Home Builders.
“Builders continue to start homes as the demand for new construction remains solid in a market lacking inventory of previously owned homes,” stated NAHB Chairman Jerry Konter. “However, construction costs are rising too quickly, which threatens housing affordability conditions in 2022 as interest rates rise.”
Compared with January, overall housing starts increased 28.7% in the Northeast, 15.3% in the Midwest and 11.4% in the South. The West had an 11.4% decline.
Building permits, meanwhile, declined 1.9% from January to 1.859 million but were up 7.7% compared with February 2021. Housing completions in February grew 5.9% from January but declined 2.8% compared with February 2021.
The full report can be found here.
