Multifamily housing drops in March
Volatility in multifamily housing caused housing
starts nationwide to drop 10.8 percent in March, the Commerce Department said.
Volatility in multifamily housing caused housing starts nationwide to drop 10.8 percent in March to a seasonally adjusted annual rate 510,000 units, the U.S. Commerce Department reported.
Officials with the National Association of Home Builders said that while there was some good news in the Commerce Department’s report -– such as gains in apartment and condo construction -– many builders are taking a wait-and-see approach.
"While improving interest among potential home buyers has builders more optimistic these days, we don't want to ramp up production until sales of new homes pick up," said NAHB Chairman Joe Robson. "A cautious attitude about new building is definitely what's called for here, and that's what most builders have wisely adopted for the time being."
The department’s numbers were similar to what the NAHB predicted, said David Crowe, the association’s chief economist.
"Today's numbers are right on target with NAHB's forecast, which anticipates that housing starts will bottom out in the second quarter, after new-home sales have stabilized," Crowe said. "Single-family starts remained virtually unchanged over the past three months, indicating that we are closing in on a bottom. Multifamily starts -- which tend to bounce around from month to month -- were responsible for the decline in total starts as they readjusted following a substantial gain in February."
Volatility in multifamily housing caused housing starts nationwide to drop 10.8 percent in March to a seasonally adjusted annual rate 510,000 units, the U.S. Commerce Department reported.
Officials with the National Association of Home Builders said that while there was some good news in the Commerce Department’s report -– such as gains in apartment and condo construction -– many builders are taking a wait-and-see approach.
"While improving interest among potential home buyers has builders more optimistic these days, we don't want to ramp up production until sales of new homes pick up," said NAHB Chairman Joe Robson. "A cautious attitude about new building is definitely what's called for here, and that's what most builders have wisely adopted for the time being."
The department’s numbers were similar to what the NAHB predicted, said David Crowe, the association’s chief economist.
"Today's numbers are right on target with NAHB's forecast, which anticipates that housing starts will bottom out in the second quarter, after new-home sales have stabilized," Crowe said. "Single-family starts remained virtually unchanged over the past three months, indicating that we are closing in on a bottom. Multifamily starts -- which tend to bounce around from month to month -- were responsible for the decline in total starts as they readjusted following a substantial gain in February."
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