Housing Starts (Mar.)

At first glance the 1.9% m/m rise in housing starts, and 2.5% m/m increase in building permits, suggests the gradual recovery in home construction continued into March. But, in fact, growth in both measures was entirely driven by the notoriously volatile multifamily sector. The worrying loss of momentum in the single-family sector shows no signs of abating. A 5.5% m/m drop in single-family permits has pushed the annual growth rate to a four-year low.