US housing starts slumped 8.7 percent in February

Combined Shape

WASHINGTON (AP) — The number of homes under construction fell 8.7 percent in February, as ground breakings for single-family houses plunged to their lowest level in nearly two years.

The Commerce Department said that builders started construction at a seasonally adjusted annual rate of 1.16 million units last month, down from a 1.27 million pace in January. The setback stems from a 17 percent drop in the building of single-family houses, which posted the weakest pace since May 2017. Apartment construction increased in February.

Single-family housing starts are running 2.3 percent below last year’s pace. Lower mortgage rates at the start of 2019 appear to be boosting buyer demand for housing, but builders are contending with rising costs for labor and land that limit how much new construction can take place. Cold weather in February also likely contributed to the decline in housing starts, while recent flooding in the Midwest might dampen building in that region.

“Today’s lackluster release is likely due to poor weather conditions,” said Matthew Speakman, an economist analyst at the real estate company Zillow. “The outlook for home construction should improve was we turn the corner into spring, but that could take longer in parts of the country where flooding continues into late March.”

Starts plummeted 29.5 percent in the Northeast. They declined by 6.8 percent in the South and 18.9 percent in the West. Home construction increased 26.8 percent in the Midwest, but the gains came entirely from apartment complexes.

Trending:
CDC Quietly Changes Major Part of 'How COVID-19 Spreads' Page, Adds Advice That Millions Didn't Get When Trump Was in Office

Housing permits, an indicator of future activity, fell 1.6 percent to an annual rate of 1.30 million.

The Western Journal has not reviewed this Associated Press story prior to publication. Therefore, it may contain editorial bias or may in some other way not meet our normal editorial standards. It is provided to our readers as a service from The Western Journal.

Truth and Accuracy

Submit a Correction →






We are committed to truth and accuracy in all of our journalism. Read our editorial standards.

Tags:
Combined Shape
The Associated Press is an independent, not-for-profit news cooperative headquartered in New York City. Their teams in over 100 countries tell the world’s stories, from breaking news to investigative reporting. They provide content and services to help engage audiences worldwide, working with companies of all types, from broadcasters to brands.
The Associated Press was the first private sector organization in the U.S. to operate on a national scale. Over the past 170 years, they have been first to inform the world of many of history's most important moments, from the assassination of Abraham Lincoln and the bombing of Pearl Harbor to the fall of the Shah of Iran and the death of Pope John Paul.

Today, they operate in 263 locations in more than 100 countries relaying breaking news, covering war and conflict and producing enterprise reports that tell the world's stories.
Location
New York City




Conversation