U.S. housing starts likely to have increased in March

U.S. housing starts had dropped 7 percent in February, driven down by a sharp fall in multifamily starts of 26.1 percent. This countered a 2.9 percent rise in single-family housing starts, as new home construction gains momentum. This strong gain followed a 3.5 percent rise in January. The South and West have contributed the vast majority of single-family starts, accounting for 77 percent of the country’s total in 2017, noted Wells Fargo in a research report. Unseasonably mild winter weather in these regions to start the year has stimulated starts, while the Midwest and Northeast have lagged because of harsher winter conditions.

The rebound in housing has been sluggish, as shortages of lots and workers have held back starts. Higher building material prices have also made it more difficult to build entry-level homes as profit margins are crimped. But momentum appears to be building over the past year and the pace of housing starts is expected to continue to trend higher. According to Wells Fargo, housing starts are expected to have come in at 1,268k in March.

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