US Housing Starts Rebound To Highest Since July 2006, Rental Permits Tumble

After February’s unexpected plunge (weather-driven), Housing Starts and Permits bounced back in March but in a very different manner.

  • After a downwardly-revised 10.3% plunge in February, Housing Starts spiked 19.4% MoM in March (much better than the +13.4% MoM expected).

  • After an upwardly-revised 8.8% drop in February, Building Permits jumped 2.7% MoM (modestly better than the +1.7% expected)

Source: Bloomberg

This pushed Housing Starts to their highest since July 2006 (but the forward-looking building permits remains well off its post-pandemic-plunge spike highs),,,

Source: Bloomberg

Both single- and multi-family starts bounced back in March…

But, while single-family permits were up 4.6% MoM, multi-family permits dropped 3.6%…

It would appear homebuilders are shifting away from ‘rental nation’. Are soaring, record-high lumber prices stalling the optimism of homebuilders going forward?

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