Economic Report: U.S. housing starts decline in March as apartment construction cools

by | Apr 18, 2023 | Stock Market

The numbers: Construction of new homes fell 0.8% in March to a rate of 1.42 million due to slower work on apartment buildings, leaving prospective buyers with limited options. Economists polled by the Wall Street Journal had forecast a 1.4 million rate of new housing starts. That’s the number of homes that would be built over an entire year if construction took place at the same rate in every month as it did in March.

Offsetting the decline in apartment projects, construction of single-family homes rose 2.7%. The small rebound in new construction this year is supported by strong demand from buyers, who are running out of options on the resale market. Building permits, a key indicator of the pace of future construction, fell a sharper 8.8% to a 1.41 million rate, the government said Tuesday.  The decline was larger than expected. All figures are seasonally adjusted. Key details: Single-family-home construction rose the most in the Midwest, with a 23.6% increase.  The pace on construction on apartments fell by. 6.7%. Permits for single-family homes rose 4.1% in March, while permits for buildings with at least five units fell by 24.3%. Overall, housing starts are down year over year. The annual rate of total housing star …

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