Home construction slides in March

Housing starts drop 8.8 percent for month; permits slide 7.7 percent.

Construction of new homes fell in March by the largest amount in five months, with weakness in all regions of the country except the Northeast.

Home construction dropped 8.8 percent to a seasonally adjusted annual rate of 1.09 million units, the Commerce Department reported Tuesday. It was the third decline in the past four months and left construction at its slowest point since October.

Applications for permits to build new homes, a good indicator of future activity, dropped 7.7 percent in March to an annual rate of 1.09 million units.

Construction activity has been volatile this year, dropping in January and March but posting a 6.9 percent rise in February. Housing construction has been helping fuel the overall economy, and economists expect the sector to rebound in the coming months.

BUILDING PERMITS

Privately-owned housing units authorized by building permits in March were at a seasonally adjusted annual rate of 1,086,000. This is 7.7 percent (±1.2%) below the revised February rate of 1,177,000, but is 4.6 percent (±0.9%) above the March 2015 estimate of 1,038,000.

Single-family authorizations in March were at a rate of 727,000; this is 1.2 percent (±1.1%) below the revised February figure of 736,000. Authorizations of units in buildings with five units or more were at a rate of 324,000 in March.

HOUSING STARTS

Privately-owned housing starts in March were at a seasonally adjusted annual rate of 1,089,000. This is 8.8 percent (±11.1%)* below the revised February estimate of 1,194,000, but is 14.2 percent (±11.7%) above the March 2015 rate of 954,000.

Single-family housing starts in March were at a rate of 764,000; this is 9.2 percent (±10.3%)* below the revised February figure of 841,000. The March rate for units in buildings with five units or more was 312,000.

HOUSING COMPLETIONS

Privately-owned housing completions in March were at a seasonally adjusted annual rate of 1,061,000. This is 3.5 percent (±13.3%)* above the revised February estimate of 1,025,000 and is 31.6 percent (±15.2%) above the March 2015 rate of 806,000.

Single-family housing completions in March were at a rate of 734,000; this is 0.3 percent (±11.5%)* below the revised February rate of 736,000. The March rate for units in buildings with five units or more was 316,000. 

Sources: Associated Press and U.S. Census Bureau News