–Starts Sectors: 1-Families -0.2%; Drops in NE, South Singles
By Joseph Plocek
WASHINGTON (MNI) – The U.S. March housing starts data show a still
fragile building sector.
March housing starts fell 5.8% to 654,000, below expectations by a
wide margin. Permits gained 4.5% to 747,000, showing future strength,
and some of the details also suggested housing remains better than the
headline.
The drop in March starts was centered in 5+ unit building at -19.8%
in a reversal of the February surge. This sector has seesawed since Fall
2011, and mild winter weather might have moved multi starts even earlier
than normal. Singles were steady at just -0.2%.
So the underlying data look better than the headline drop. Housing
continues to skate around in a holding pattern.
By region, starts advanced +32.8% in the Northeast and +1.0% in the
Midwest, but were down -15.9% in the South (mainly due to severe
seasonal adjustment in the multis), and were flat in the West.
Any lingering permits weakness was centered in dips in the
single-families in the Northest and South. In both areas permits remain
aligned with starts, suggesting no imbalances. Permits in the South at
239,000 represent more than half the nation’s single-family building
because the region includes the growth areas of North Carolina, Florida
and Texas.
March housing completions were 600,000 and units under construction
totaled 447,000, a 6.4% gain over the year. These data are hardly robust
compared to the peak building period of five years ago.
**MNI Washington Bureau: (202)371-2121**
[TOPICS: MAUDS$,M$U$$$,MT$$$$,MAUDR$]
