US housing starts rebounded to 15-month highs in March, led by construction of multi-family units, US Census Bureau data published today show.
US housing starts rose to a seasonally-adjusted annual rate of 1.502mn units in March, up by 10.8pc from a year prior and the highest level since December 2024. March starts also rose by 10.8 from February.
Gains continue to be led by multi-family starts, which have underpinned growth since January. Project starts for five or more units climbed by nearly 14pc year-to-year to a seasonally-adjusted annual rate of 446,000 units. Single-family starts rose by 8.9pc during the same period to 1.032mn units.
Permits continue to be issued at slower rates on bearish US housing market conditions underpinned by diminished affordability and elevated interest rates, weak hiring and broad-based economic uncertainty.
March permits fell by 7.4pc from the prior year and slid by 10.8pc from the prior month, falling to an annual rate of 1.372mn permits. Permits slipped by 24pc from February for multifamily projects of five or more units, while permits for single-family homes dropped by 3.8pc in the same period.
US homebuilders are pessimistic about the state of the housing sector this year, with consumer confidence at an all-time low with concerns stemming from the war in the Middle East and short-term inflation widening, data from the University of Michigan's consumer sentiment survey show.
Mortgage rates have also risen steadily since the outbreak of the war on 28 February, climbing above 6.5pc in March, data from the Mortgage Bankers' Association (MBA) show.
