Posted on 03/18/2025 2:11:17 PM PDT by SoConPubbie
New home construction surged in February, as housing starts jumped 11.2 percent to a seasonally adjusted annual rate of 1.5 million, far surpassing expectations. The increase was led by a strong rebound in single-family homebuilding, a sign that builders are responding to demand despite lingering concerns over mortgage rates and supply constraints.
Single-family starts rose 11.4 percent to an annualized 1.11 million, the fastest pace in a year. Multi-family construction also posted a 10.7 percent increase, though that segment has shown more volatility in recent months. The strength in February’s report follows a period of stagnation in housing construction, particularly in the final years of the previous administration when builders faced high interest rates, rising costs, and regulatory uncertainty.
Economists had expected an increase in starts in February after an unusually cold January held back new projects. But the actual surge far exceeded expectations for a pace of 1.38 million starts. The January figure was revised down to 1.35 million from 1.366 million.
Even with the strong February gains, some indicators suggest that builders remain cautious about future projects. Building permits, a leading indicator of future construction, declined 1.2 percent, though they still came in slightly ahead of expectations. Single-family permits edged down just 0.2 percent, suggesting that while some builders are waiting for further clarity on economic conditions, there is still strong momentum in the sector.
Meanwhile, housing completions fell 4.0 percent, driven largely by a 20.7 percent decline in multi-family completions. However, single-family completions actually increased 7.1 percent, reinforcing the view that demand remains solid for newly built homes.
The surge in housing starts comes at a time when supply constraints have kept home prices elevated. While some analysts have pointed to mortgage rates as a potential headwind, builders are clearly moving forward with new projects, suggesting confidence in future demand.
(Excerpt) Read more at breitbart.com ...
The increase in new home construction also stands in contrast to some of the more downbeat economic indicators in recent weeks. While reports on consumer sentiment and retail sales have pointed to some lingering uncertainty, the housing sector’s strength signals that parts of the economy are still expanding.
With single-family home construction picking up pace and builders pushing forward despite higher costs, the February report suggests that the long-stalled housing market may finally be regaining its momentum.
We need saw mills in the USA...Let the owls figure it out. It’s been an asset since we began....
Hope they’re not all McMansions...
I’d like to see more apartment buildings. A lot of people can’t afford rent.
Same thought here. Are they building McMansions? How about smaller homes that more people can afford?
In my neck of the Upstate NY woods there are plenty of existing McMansions for sale, and and most aren’t moving.
Even if buyers can afford the mortgage, the confiscatory property taxes, almost $10K annually, are a deal breaker.
It will be interesting to see how the tariffs affect this. I work for a Fortune 500 residential construction supplier and we’re going to be hit hard, at least in the short term.
And then there are the open concept floor plans, cathedral ceilings...
Which are nuts in NYS given our sky high utility rates.
At that point the price of rentals will begin to come down.
Let's be honest, no family dreams of living in a apartment.
Yep. The property taxes are a big reason why people cannot afford to buy houses.
Where I live, builders have been building only two types of housing: McMansions and apartments. Nothing in between.
True. But there is a lot of discussion about young people with no social lives. Many have given up on dating. It’s not a question of a “family”. It’s just someone living in Mom’s basement. If apartments become more available, a lot of people would consider it a dream come true.
I don’t understand cathedral ceilings, either. Maybe if I were wealthy... Otherwise, it’s just wasted space. And, yep, the cost of utilities must be through the roof.
I’d like to see more apartment buildings.
............
In the growing US cities, whole sections of town are new 5-storey flats. They’re not cheap.
“ The strength in February’s report…”
Nowhere in the article is the report identified. Horrible writing. Anyone have a link to it?
Found it…from the US Census Bureau…
“ Housing Starts
Privately-owned housing starts in February were at a seasonally adjusted annual rate of 1,501,000. This is 11.2 percent (±15.7 percent)* above the revised January estimate of 1,350,000, but is 2.9 percent (±13.0 percent)* below the February 2024 rate of 1,546,000. Single-family housing starts in February were at a rate of 1,108,000; this is 11.4 percent (±19.7 percent)* above the revised January figure of 995,000. The February rate for units in buildings with five units or more was 370,000.”
yup. why my grandparents bought their first house in 1960, nearly every new home in the town they were looking at was a single-story 1200-1500sf ranch/
why can’t we build more of those?
I can tell you why they don’t in high property tax states...
McMansions rake in a lot more property tax revenue.
This is great news for the economy.
Under Biden the worst part of inflation was housing, not food.
It would be interesting to breakdown the details now.
How much due to regulation and the climate change religion?
How much due to energy more plentiful?
How much due to increase domestic logging and reduced Canadian logs?
How much due to consumer optimism?
How much due to . . .
How much due to zoning restrictions, environmental regulations, and permitting fees?
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