The monthly
report on new residential construction from the Commerce Department revealed on
Tuesday that housing starts plunged by 14.7 per cent m-o-m in March to a
seasonally adjusted annual pace of 1.321 million (the lowest
level since August 2023 (1.305 million)), while building permits declined by 4.3
per cent m-o-m to a seasonally adjusted annual rate of 1.458 million (the lowest
level since July 2023 (1.443 million)).
Economists had predicted
housing starts of 1.480 million units for March and building permits of 1.514
million units.
Data for February
was revised to show homebuilding growing at a pace of 1.549 million units, instead
of rising at a rate of 1.521 million units as originally announced, and permits
growing at a pace of 1.523 million units, instead of increasing at a rate of 1.524
million units as previously reported.
According to
the report, permits for single-family homes, the largest segment of the market,
decreased by 5.7 per cent m-o-m in March, while approvals for the multi-family
homes segment (includes 2 to 4 and 5 or more housing units) fell by 1.2 per
cent m-o-m.
In the meantime, groundbreaking on single-family
homes tumbled by 12.4 per cent m-o-m in March, while multi-unit starts plummeted
by 20.8 per cent m-o-m.