After plunging in February, Housing Starts and Permits were expected to recover in March and while both showed increases MoM (and upward revisions to Feb data), Starts disappointed expectations, extending the Housing market’s disappointing streak. The gains for both were driven by a rental nation renaissance (multi-family units up, single-family units down).
The flip-flopping nature of the Starts/Permits data continues with Starts +1.9% MoM in March (below expectations of a 2.5% rise) and Permits up 1.9% MoM (beating expectations of unchanged)…
As a reminder Starts were down 7.0% in March (before being dramatically upwardly revised to a 3.3% drop) and Permits tumbled 5.7% in Feb (before being revised up to a 4.1% drop).
Single family starts (SAAR) dropped 3.7% from 900k to 867K, multifamily starts rose 16.1% from 378K to 439K
Single family permits (SAAR) dropped -5.5% from 889k to 840K, multifamily permits rose 22.9% from 385K to 473K
Overall the housing sector’s data in 2018 has been notably disappointing…