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    Analysis

    March 25, 2019

    Housing Starts Fall After a Rousing January

    Written by Sandy Williams

    Housing starts took a tumble in February, dropping 8.7 percent below January’s level for a seasonally adjusted annual rate of 1,162,000. Single-family starts plummeted 17.0 percent, although apartment-style housing of five units or more jumped 23.5 percent. Starts declined in all regions except the Midwest, which saw a gain of 26.8 percent for the month.

    “The overall lower starts numbers are somewhat deceiving given the revised single-family starts figure in January was at a post-recession high,” said Danushka Nanayakkara-Skillington, AVP for Forecasting and Analysis at the National Association of Home Builders. “Absent the surge last month, the drop in single-family production in February is not as huge as it appears. Still, builders continue to remain cautious due to affordability concerns, as illustrated by the flat permits data.”

    Sandy Williams

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