Housing Starts Post Steepest Monthly Decline on Record
Housing starts for April posted their steepest monthly decline on record, according to Commerce Department figures released Tuesday. However, the National Association of Home Builders’ (NAHB) chief economist, Robert Dietz, noted that the 30.2% drop to an annualized pace of 891,000 units was “somewhat better than forecast.”
Single-family starts decreased 25.4% to a 650,000-unit seasonally adjusted annual rate, the lowest single-family starts rate since the first quarter of 2015. In the multifamily sector, construction starts decreased 40.5% to a 241,000-unit pace.
“Despite today’s numbers, there is an undercurrent of long-term positivity in the housing market that will likely allow for a strong rebound,” said NAHB chairman Dean Mon. “Our builder confidence index has already shown signs of a turnaround. Housing was showing signs of momentum before the pandemic and is poised to lead the economic recovery as virus mitigation efforts take hold and more states take gradual steps to reopen.”
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