Housing starts increased 10.8% in March to a seasonally adjusted annual rate of 1.5 million units despite ongoing affordability challenges, according to the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
Single-family starts increased 9.7% in March, to a seasonally adjusted annual rate of 1.03 million units, and rose 8.9% year-over-year. Multifamily starts increased 13.3% to a seasonally adjusted annual rate of 470,000 units, up 15.5% year-over-year.
“Housing starts posted a solid rebound in March, suggesting builders are responding to pockets of improving demand despite ongoing affordability challenges, although activity remains sensitive to interest rate movements and construction costs,” Bill Owens, chairman of the National Association of Home Builders said.
“Single-family starts drove much of the monthly increase, indicating that builders are cautiously ramping up production to meet persistent inventory shortages in the resale market,” said Danushka Nanayakkara-Skillington, NAHB’s assistant vice president for forecasting and analysis. “While this is an encouraging sign, the pace of construction is likely to remain measured as builders continue to navigate elevated financing costs and labor availability.”
Year-over-year overall housing starts rose 36.0% in the Northeast, 7.8% in the Midwest and 3% in the South; they fell 15.5% in the West.
