Single-family housing starts decreased 14.2% from February to March to a 940,000 seasonally adjusted annual rate, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
Constrained housing affordability conditions due to elevated interest rates, rising construction costs and labor shortages led to a reduction in housing production in March, the National Association of Home Builders said.
Overall housing starts decreased 11.4% in March to a seasonally adjusted annual rate of 1.32 million units.
“The drop in March housing starts is a clear signal that affordability pressures are intensifying,” NAHB Chairman Buddy Hughes said in a statement. “Elevated mortgage rates and rising construction costs are making it increasingly difficult to deliver homes at price points accessible to entry-level buyers.”
Read the full report here.
