By Manuel Gutierrez, Consulting Economist to NKBA

New housing starts are at their highest level in over 15 years.

• March gains barely exceed the previous month but translate into 1.79 million new annual housing units.
• March housing permits, the bellwether of future construction, also showed a slight overall monthly gain.
• Single-family starts fell but were more than compensated for by a 4.6 percent gain for multi-family units.
• New multi-family homes have increased from 1 in 5 total units at the end of 2020 to the current 1 in 3.
• Regionally, the South, which accounts for 47% of the nation’s new housing construction, saw a significant 17 percent drop for the month, the first time in five months the region’s starts have tracked below last year’s pace.
• The Midwest registered a more modest decline in starts, but was more than offset by an 8 percent gain in the West and an astounding 111 jump in the Northeast, which accounted for 16 percent of all starts vs. the usual 8 percent.

“New housing starts are at their highest levels since 2006.”