Housing starts declined 4.5% to a seasonally adjusted annual rate of 1.31 million units in January, the U.S. Department of Housing and Urban Development and the U.S. Census Bureau announced.
Compared with January 2022, housing starts were down 21.4%.
“Housing construction weakened in January as ongoing affordability conditions fueled by high mortgage rates and building material costs challenged the market,” stated Alicia Huey, chairman of the National Association of Home Builders (NAHB).
Housing completions rose 1.0% from December and 12.8% compared with January 2022. The number of apartments currently under construction is at the highest level since 1973, signaling an upcoming slowdown in apartment starts as completions begin to outpace starts, according to the NAHB.
Building permits rose 0.1% from December but slid 27.3% compared with January 2022.
