Single-family housing starts decreased 12.4% in March to a rate of 1,022,000, according to the U.S. Census Bureau and the Department of Housing and Urban Development.
At a seasonally adjusted annual rate of 1,321,000, overall housing starts fell 14.7% below the revised February estimate of 1,549,000 and 4.3% below the March 2023 rate of 1,380,000. The March rate for units in buildings with five units or more was 290,000.
“We should expect jaggedness in housing starts throughout the year. Builders are trying to juggle land supply, financing costs, and skittish consumers with a belief that the housing market is under supplied and they need to build more,” says Zonda chief economist Ali Wolf. “The multifamily market has been dealing with fears of a near-term oversupply and dramatic capital constraints. Both of those have been expected to weigh on new starts and today’s release captures that perfectly.”
Privately‐owned housing units authorized by building permits in March decreased as well at a seasonally adjusted annual rate of 1,458,000 or 4.3% below the revised February rate of 1,523,000, but 1.5% above the March 2023 rate of 1,437,000.
Single‐family authorizations in March were at a rate of 973,000. A 5.7% decrease from the revised February figure of 1,032,000. Authorizations of units in buildings with five units or more were at a rate of 433,000.
Housing completions in March dropped at a seasonally adjusted annual rate of 1,469,000, which is a 13.5% decrease from the revised February estimate of 1,698,000 and 3.9% decline from the March 2023 rate of 1,528,000.
Single‐family housing completions were at a rate of 947,000, or 10.5% below the revised February rate of 1,058,000. The March rate for units in buildings with five units or more was 502,000.
