Housing starts post major gains in February 2023 MABA MassachusettsRealEstate FirstTimeHomeBuyers MaBuyerAgent

New-home construction surged in February as builders sought to take advantage of tight existing-home inventory. Housing starts, which include construction of both new single-family and multifamily residences, rose nine point eight percent month over month to a seasonally adjusted annual rate of 1,450,000 units, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development said in a press release. Year over year, starts were down eighteen point four percent.

 New single-family home starts rose one point one percent from January’s revised annual estimate to 821,000, while multifamily starts surged twenty four point one percent to 608,000. On a yearly basis, the rate of single-family starts was down thirty one point six percent, while multifamily was up fourteen point three percent. Permits, a leading indicator of future new-home supply, rose thirteen point eight percent month over month and fell seventeen point nine percent year over year to 1,524,000 units, while housing completions jumped twelve point two percent month over month and twelve point eight percent year over year to an annual rate of 1,557,000.

 “One of the drivers behind higher builder sentiment is the lack of existing-home inventory available for sale,” First American deputy chief economist Odeta Kushi said. “The shortage of existing-home inventory means more and more buyers could turn to the new-home market. As the inventory of new, completed homes rises, it will provide some much-needed relief to a supply-starved market and put downward pressure on new-home prices.”

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