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US March housing starts soared in March 19.4% m/m vs +13.5% expected, or 1739K v 1613K expected and February's revised 1457K. The highest reading since June of 2006, after harsh winter weather affected activity in February. Building permits were 1766K v 1750K expected

US New Housing Starts March 2021 

The move suggests disruption and demographic influences.

US Housing Starts for March 2021:

  • US March housing starts 1739K vs 1613K expected Prior was 1421K (revised to 1457K)
  • Sales up 19.4% m/m vs +13.5% expected
  • Single-family housing starts jumped 15.3 % to 1.238 million
  • Rate for units in buildings with five units or more increased 30% to 477,000.
  • Strong gains were reported in the Northeast (64 percent), Midwest (122.8 percent) and the South (13.5 percent)
  • Starts in the West were down 13.6 percent. 

United States Housing Starts

The housing market has been supported by low interest rates and increasing demand from people moving away from big cities due to the coronavirus crisis, but the momentum could slow as rising lumber prices amid supply constraints could limit production and ease a shortage of homes.

US Building Permits for March 2021:

  • Building permits 1766K vs 1750K expected and above market expectations of 1.75 million.
  • Building permits in the United States rose 2.7% from a month earlier. '
  • Single-family authorizations advanced 4.6 percent to a rate of 1.199 million
  • Permits for the volatile multi-segment dropped 1.2 percent to a rate of 567 thousand. '
  • Permits went up in the South (6.4 percent to 915 thousand) and the Midwest (2.0 percent to 254 thousand)

United States Building Permits

The big question is after the lockdown eases and the economy reopens how much further can housing starts go with the massive disruption and divergence with unemployment and wealth creation and erosion demographics.

Source: US Census 

From The TradersCommunity News Desk

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