US New-Home Construction Plunges by Most Since April 2020
- January decline was led by steep drop in multifamily projects
- However builders are optimistic as mortgage rates seen falling
This article is for subscribers only.
US new-home construction sank at the start of the year by the most since the onset of the pandemic, indicating the recovery in the housing market will be gradual as many buyers await a further decline in mortgage rates.
Residential starts decreased 14.8% last month to a 1.3 million annualized rate, after an upward revision to the prior month, government data showed Friday. Multifamily home construction plummeted by more than 35% after surging in the prior month, while single-family groundbreakings also slowed.