Housing Starts February 2007 - Housing Starts Rose in February But Levels Remain Below a Year Ago 

Housing starts in February regained some of the sharp losses it experienced in January, according to Robert Sheehan, consulting economist for the National Apartment Association.

“The rate of starts in February was still 22 percent less than one year ago, and it is still too early to tell if a sustainable recovery is imminent,” Sheehan said. “There are many issues that cloud the outlook recovery. They include the tightening of standards for subprime lending, lower household growth and stronger inflationary pressures,” he added.

The housing starts rate for February was estimated at a 1.525 million unit seasonally adjusted annual rate, according to the U.S. Department of Commerce up, 9 percent from the revised 1.399 million unit rate for January. Single-family construction increased 10.3 percent to a 1.220 million unit rate from 1.108 million a month earlier. Apartment (units in structures with 5 or more units) starts declined 2.2 percent to a 266,000 unit rate from 272,000 in January. Total multifamily construction starts rose 4.1 percent to a 305,000 unit rate in February from 293,000 units a month earlier.

Housing starts were mixed regionally. Starts increased 26.4 percent in the West to a 318,000 unit rate; and 18 percent in the South to a 701,000 unit annual rate. They fell 29.7 percent in the Northeast to a 135,000 unit rate and 14.4 percent in the Midwest to 161,000 units.

Building permit activity declined 2.5 percent to a 1.532 million unit annual rate in February from the 1.571 million revised rate for January. Single-family permits were off 3.1 percent. Total multifamily permits were essentially unchanged with a 0.9% decline, and the apartment component was up 0.3 percent.

Housing starts over the first two months of this year were down 32.3 percent a total of 201,700 units from the 298,100 units over the same period in 2006. Single-family starts were down 34.4 percent to a 160,400 unit rate from 244,600 units a year earlier. Total multifamily starts fell 22.8 percent to 41,300 units from 53,500 units. Apartment construction over the first two months of this year declined 26.4 percent to 37,100 units from 49,200 a year ago.

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