New home building in the United States increased by 5.2% to a seasonally adjusted annual rate of 1.178 million units in February, according to newly released data.
The figures from the US Department of Housing and Urban Development and the Commerce Department show that single family production increased 7.2% to 822,000 units, its highest level since November 2007while multifamily starts remained virtually unchanged, inching up 0.8% to 356,000 units.
‘This month’s report is consistent with positive builder sentiment and other economic indicators showing that the housing market continues to recover at a gradual pace,’ said Ed Brady, chairman of the National Association of Home Builders (NAHB).
‘February’s single family gains indicate that this sector is strengthening in line with our forecast. As the US economy firms, job creation continues and mortgage interest rates remain low, we should see further growth in housing production moving forward,’ said NAHB chief economist David Crowe.
Combined single and multifamily starts rose in three of the four regions in February, with the West, Midwest and South posting respective gains of 26.1%, 19.9% and 7..1% The Northeast registered a 51.3% loss.
A decline in the volatile multifamily sector pushed overall permit issuance down 3.1% in February. Multifamily permits fell 8.4% to a rate of 436,000 while single family permits were up 0.4% to 731,000.
Regionally, permits increased in the Northeast by 40.4%. The Midwest, West and South registered respective permit losses of 11.4%, 7.2% and 4.4%.
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