Housing starts fell sharply in February, dropping the most in a single month since 1984, the U.S. Census Bureau reports. The 23% retreat left starts at an annualized rate of 479,000 in February, or just above the previous low for this cycle—477,000 in April 2009. It’s unclear if starts are headed for new lows, but the possibility surely went up a notch or two in light of today’s numbers.
Daily Archives: March 16, 2011
Housing’s Muted Role In The Economic Recovery
The February update on housing starts arrives later today, but a repeat performance of January’s near-15% rise isn’t in the cards. The consensus forecast calls for a 3.5% decline for last month, according to Briefing.com. The housing market, in other words, is still treading water after a severe correction. Housing starts may be stabilizing after falling more than 50% from the glory days before the Great Recession, but a rebound of any magnitude is widely discounted as improbable for the foreseeable future. The question is how that pinches the economic recovery?