Overall housing starts increased 10.7% in February to a seasonally adjusted annual rate of 1.52 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
Key takeaways
- Single-family starts increased 11.6% to a 1.13 million seasonally adjusted annual rate. Single-family starts are also up 35.2% compared to a year ago. In February, the number of single-family homes under construction stood at 683,000.
- The multifamily sector, which includes apartment buildings and condos, increased 8.3% to an annualized 392,000 pace. The number of apartments under construction fell to 983,000 in February.
- Regionally, combined single-family and multifamily starts are 10.3% lower in the Northeast, 50.7% higher in the Midwest, 15.7% higher in the South and 7.9% lower in the West.
Experts' analysis
"Single-family housing is poised for a good year in 2024 with starts and permits on an upward trend," says Danushka Nanayakkara-Skillington, assistant vice president for forecasting and analysis, National Association of Home Builders. "The uptick in single-family permits is good news for the industry, which was hit hard by tight monetary policy last year. However, builders still face several supply-side challenges in the form of shortages and higher prices for buildable lots and labor."
