US Housing Starts Collapsed In March - Biggest Drop Since COVID Lockdowns

The roller-coaster ride in housing permits starts, and completions in the last few months is set to continue today... and 'surprise' they did. After a big (+10.7%) surge in February, Starts crashed 14.7% MoM in March (massively worse than the 2.,4% drop expected). Building Permits also plunged (-4.3% MoM vs -0.9% exp)...

For context, this is the largest MoM drop in housing starts since the COVID lockdowns...

Source: Bloomberg

It was a bloodbath across the board with Rental Unit Starts plummeting 20.8% MoM...

Source: Bloomberg

That pushed total multi-family starts SAAR down to its lowest since COVID lockdowns...

The plunge in permits was less dramatic and driven completely by single-family permits down 5.7% to 973K SAAR, from 1.032MM, this is the lowest since October. Multi-family permits flat at 433K

Intriguingly, while starts and completions plunged in March, the BLS believes that construction jobs surged to a new record high...

Source: Bloomberg

Finally, just what will homebuilders do now that expectations for 2024 rate-cuts have collapsed?

Source: Bloomberg

One thing is for sure - do not trust what homebuilders 'say' (as NAHB confidence jumped to its highest since May 2022 at the same time as housing starts crashed)...

Source: Bloomberg

If they build them, will homebuyers come?

Source: Bloomberg

Maybe, but it will be bloody expensive for them!

More By This Author:

It's Not Just The Middle East: Here Are The Main Events This Busy Week
Google Begins Blocking News From California Outlets Over State Bill
Hummer Reportedly Kills EV Base 2 Trim Level As Demand Cools

Disclosure: Copyright ©2009-2024 Media, LTD; All Rights Reserved. Zero Hedge is intended for Mature Audiences. Familiarize yourself with our legal and use policies every ...

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.