Housing Starts saw a big rebound in February, with both single-family and multi-family construction improving from January’s slump. When compared to a year ago, however, single-family starts were up 35.2% while multi-family starts were down 35.9%. This suggests that we’re seeing a shift from multi-family to single-family construction, which is welcome news as this is where supply is needed around much of the country. Single-family Building Permits also reached their highest level in a year, up 29.5% when compared to February 2023, signaling that the numbers for future supply are also favorable. We also saw a big boost in completions, and if the current pace continues, this will add a further boost to much-needed supply.
What’s the bottom line? Danushka Nanayakkara-Skillington, NAHB’s Assistant VP for Forecasting and Analysis, confirmed that “single-family housing is poised for a good year in 2024 with starts and permits on an upward trend.” Chair Carl Harris added, “The solid level of single-family production in February tracks closely with rising builder sentiment, and with mortgage rates expected to moderate further this year, this will provide an added boost for single-family building.”