Privately owned housing starts in March were at a seasonally adjusted annual rate of 1,739,000, which is 19.4% above the revised February estimate of 1,457,000 and is 37% above the March 2020 rate of 1,269,000, according to the latest new residential construction report from the U.S. Census Bureau and the Department of Housing and Urban Development.
Single-family housing starts last month were at a rate of 1,238,000, or 15.3% above the revised February figure of 1,074,000. The March rate for units in buildings with five units or more was 477,000.
“Today’s new residential construction report from the Census Bureau showed an expected bounce-back in the pace of housing starts over the month of March following a cold weather-induced slump in February,” says Doug Duncan, chief economist at Fannie Mae. “While much of the month’s strength reflects the delayed start of projects that would have likely occurred in February if not for extremely cold weather, the underlying trend in home construction remains strong.”
March’s housing completions were at a seasonally adjusted annual rate of 1,580,000, which is 16.6% above the revised February estimate of 1,355,000 and is 23.4% above the March 2020 rate of 1,280,000. Single-family housing completions last month were at a rate of 1,099,000, or 5.3% above the revised February rate of 1,044,000. The March rate for units in buildings with five units or more was 476,000.
“Single-family housing completions also increased to its fastest pace since 2007,” says Odeta Kushi, deputy chief economist at First American. “An increase in completions means more homes on the market in the short term, providing immediate relief to home buyers in supply-constrained markets.”
Housing units authorized by building permits in March were at a seasonally adjusted annual rate of 1,766,000, which is 2.7% above the revised February rate of 1,720,000 and is 30.2% above the March 2020 rate of 1,356,000. Single-family authorizations last month were at a rate of 1,199,000, or 4.6% above the revised February figure of 1,146,000. Authorizations of units in buildings with five units or more were at a rate of 508,000.
“Overall, March’s new construction numbers are a positive indicator for both the housing market and the economy as a whole, especially compared to last year,” says Tendayi Kapfidze, chief economist at LendingTree. “While the threat of COVID-19 has not totally gone away, its impact on home building has significantly lessened. Going forward, rising lumber costs will likely continue to be a problem for builders, which is somewhat of a concern. Nonetheless, high demand for new homes should offset these rising material costs.”
