U.S. Housing Starts Slow

U.S. home-construction starts fell in January for the first time in five months, signaling that rising residential real estate prices may be constraining buyer demand. A U.S. Census Bureau and Department of Housing and Urban Development report says residential starts dropped by six per cent from the prior month to a 1.58 million annualized rate. Still, housing starts remain above pre-pandemic levels thanks to the Federal Reserve’s monetary policy which has pushed mortgage rates to record lows and driving demand upward. Single-family housing starts, which were at the highest since 2006 by the end of last year, decreased by 12.2 per cent to a 1.16 million pace. Multifamily starts, which tend to be volatile, surged 17.1 per cent to a 418,000 pace, the fastest since July.