Privately owned housing starts dropped 14.7% in March, the largest monthly decline since the onset of the COVID-19 pandemic in April 2020.
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Construction of new homes fell 4.3% in December, as home builders scaled back new projects.
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Specifically, single-family homes were built at a seasonally adjusted annual rate of 963,000, up 3.2% from 933,000 in August and up 8.6% from 887,000 a year earlier, according to government figures.
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So-called housing starts rose to a 1.45 million annual pace from 1.4 million in June, the government said Wednesday.
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Single-family home permits and completions, meanwhile, also rose, according to the U.S. Census Bureau and the U.S. Department of Housing and Urban Development.
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The drop in the pace of new-home construction follows a significant surge the month before, according to government statistics.
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Nearly 2.5 million households, including many first-time buyers, have been priced out of homeownership in the past year, says a new report.
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The larger-than-expected increase comes as homebuilder sentiment rose for the sixth month in a row.
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Single-family permits also posted a gain, indicating even more new homes are headed to today’s supply-constrained housing market.
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Builders are finally figuring out how to put up more starter homes that first-time and other cash-strapped homebuyers can afford.
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