House building in the United States grew past expectations last month as construction of multi-family homes is again on the rise, at the same time lows of the single-family home building implies deceleration of the housing market. Housing starts added 1.9% moving up to a seasonally adjusted yearly rate of 1.319 mln, according to today’s data by the Commerce Department.
February revised figures mean drop to the rate of 1.295 mln units, while earlier level was 1.236 mln. Activity in the sector seems to wane regardless of March’s upturn in house building. Single-family home construction, holding the bigger part of the housing market, receded 3.7% to 867,000 units last month.
Yesterday’s survey revealed decrease in confidence of home builders in the current month, which makes it a fourth consecutive month of decline. Businesses expressed their dissatisfaction with insufficient amount of buildable lots and rise of prices on building materials.
As the survey demonstrated, new tariffs on Canada’s lumber and other goods introduced by the U.S. administration caused hike of prices and made houses less affordable. Considerable growth of house building is unlikely, especially in view of supply restrictions, which is required to close the deficit of homes on the market.