The monthly
report on new residential construction from the Commerce Department showed on Tuesday
that housing starts soared by 10.7 per cent m-o-m in February to a seasonally
adjusted annual pace of 1.521 million, recording its strongest gain since May
2023 (+17.4 per cent m-o-m), while building permits increased by 1.9
per cent m-o-m to a seasonally adjusted annual rate of 1.518 million, the highest
level since August 2023 (1.541 million).
Economists had foreseen
housing starts of 1.425 million units for February and building permits of 1.495
million units.
Data for January
was revised to show homebuilding growing at a pace of 1.374 million units, instead
of rising at a rate of 1.331 million units as reported originally.
According to
the report, permits for single-family homes, the largest segment of the market,
increased by 1.0 per cent m-o-m in February, while approvals for the
multi-family homes segment (includes 2 to 4 and 5 or more housing units) climbed
by 4.1 per cent m-o-m.
In the
meantime, groundbreaking on single-family homes surged by 11.6 per cent m-o-m
in February, while multi-unit starts jumped by 8.6 per cent m-o-m.