March housing starts fail to impress

Sure, housing starts were up 14.2% over March 2015, but more was expected in the latest tally from the U.S. Census Bureau and the Department of Housing and Urban Development.

The seasonally adjusted annual rate for March came in at 1,089,000, down 8.5% from the upwardly revised February estimate of 1,194,000. Most analysts were expecting a modest 1,160,000 for the month.

Single-family starts were down 9.2% to a rate of 764,000.

Building permits also produced little to cheer about. March’s numbers for authorized permits was 1,086,000, 7.7% below the February rate of 1,177,000.

Still, the National Association of Home Builders describes the landscape as one of slow growth.

"Single-family starts are off from their strong showing in February but this slowdown represents a return to a long-run, gradual growth trend that is consistent with builder confidence levels, which are overall positive," said NAHB Chief Economist Robert Dietz. "While we are also seeing a monthly decline on the multifamily front, multifamily construction is expected to level off at a solid rate given the high level of rental housing demand."

On a regional basis:

• Northeast: up 61.3% over last month, up 21.0% over last year;

• Midwest: down 25.4% over last month, up 5.6% over last year;

• South: down 8.4% over last month, up 8.6% over last year; and

• West: down 15.7% over last month, up 30.8% over last year.