HVAC Breaking News

Mar. 22, 2002: Housing Starts Increase 2.8% In February

March 22, 2002
/ Print / Reprints /
/ Text Size+
WASHINGTON, DC — Indicating that the U.S. housing market will be a positive contributor to economic growth in the first quarter, the Commerce Department reported that overall housing starts rose 2.8% in February to a seasonally adjusted annual rate of 1.77 million units, the largest increase since 1998.

The gain was due entirely to the single-family sector, where starts rose 7.4% to a rate of 1.46 million units — their fastest pace in more than 20 years — since December 1978.

"These exceptionally strong numbers, combined with upwardly revised figures for January and December, are ample evidence that housing — specifically residential fixed investment — is helping pull the economy out of recession," said Gary Garczynski, president of the National Association of Home Builders (NAHB). The Commerce Department revised its already strong report on January housing starts from an originally reported overall rate of 1.68 million units to 1.72 million units. It also revised upward its report on December starts, from 1.58 million units to 1.6 million units.

Multifamily starts, which are typically more volatile, fell 14.3% to an annual rate of 312,000 units, partially offsetting a substantial gain in January.

Building permits, an indicator of future building activity, rose nearly 2% in February to a seasonally adjusted annual rate of 1.75 million units. Single-family permits rose 2.7% to a rate of 1.37 million units, while multifamily permits declined 1.3% to a rate of 381,000 units. Both were up from their fourth quarter 2001 averages.

Attributing housing's exceptionally strong showing at the beginning of this year partly to unusually favorable weather conditions, Garczynski also credited the ongoing economic recovery, continuing low mortgage rates, reviving consumer confidence, and strong house price appreciation.

While some slowing of housing production may occur in the second quarter as things settle down to a more sustainable, but strong, level, Garczynski said, NAHB is forecasting that total housing starts in 2002 will about equal 2001's healthy pace of 1.6 million units.

Publication date: 03/18/2002

Did you enjoy this article? Click here to subscribe to The NEWS Magazine

Recent Articles by Greg Mazurkiewicz

You must login or register in order to post a comment.



Image Galleries

2014 Energy Efficiency Forum

Highlights from the 25th annual Energy Efficiency Forum in Washington, D.C.


NEWSMakers: Mark Satterfield

Mark Satterfield, founder and CEO of Gentle Rain Marketing Inc. and author of “The One Week Marketing Plan” talks about his book and the importance of HVAC blogging. Posted on Sept. 19.

More Podcasts


NEWS 09-15-14 cover

2014 September 15

Check out the weekly edition of The NEWS today!

Table Of Contents Subscribe

Venting R-22

The NEWS reported that a man received prison time for venting R-22. Should EPA step up enforcement?
View Results Poll Archive


2014 National Plumbing & HVAC Estimator

Every plumbing and HVAC estimator can use the cost estimates in this practical manual!

More Products

Clear Seas Research


Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.


Magazine image
Register today for complete access to ACHRNews.com. Get full access to the latest features, Extra Edition, and more.


facebook icontwitter iconyoutube iconLinkedIn i con