Housing Starts Slid 10.3% in February

Washington, DC, March 17, 2021-Privately-owned housing starts in February were at a seasonally adjusted annual rate of 1,421,000, 10.3% below the revised January estimate of 1,584,000 and 9.3% below the February 2020 rate of 1,567,000, according to the U.S. Census Bureau. Single-family housing starts in February were at a rate of 1,040,000; this is 8.5% below the revised January figure of 1,136,000. The February rate for units in buildings with five units or more was 372,000.

Privately-owned housing units authorized by building permits in February were at a seasonally adjusted annual rate of 1,682,000. This is 10.8% below the revised January rate of 1,886,000, but is 17.0% above the February 2020 rate of 1,438,000. Single-family authorizations in February were at a rate of 1,143,000; this is 10.0% below the revised January figure of 1,270,000. Authorizations of units in buildings with five units or more were at a rate of 495,000 in February.

Privately-owned housing completions in February were at a seasonally adjusted annual rate of 1,362,000. This is 2.9% above the revised January estimate of 1,324,000 and is 5.0% above the February 2020 rate of 1,297,000. Single-family housing completions in February were at a rate of 1,042,000; this is 2.8% above the revised January rate of 1,014,000. The February rate for units in buildings with five units or more was 314,000.

According to the National Association of Home Builders, the decline is due to surging material costs and higher interest rates.