New-home construction sees its largest monthly decline since March 1984, as COVID closures take a toll.
According to March’s economic report by MarketWatch, new-build housing starts and permits have fallen to their slowest pace since last July.
Builders started construction on new homes in the U.S. at a pace of 1.22 million in March, representing a 22% decrease from a revised 1.56 million in February. However, even with this decrease, the figures were still 1.4% higher than a year ago.
It’s the largest decline we’ve seen since March 1984.
Permitting activity, however, had a little less dramatic of a slowdown. Privately-owned housing unit permits were authorized at a seasonally-adjusted rate of 1.35 million. That was 6.8% below the revised pace of 1.45 million set in February, but still 5% above last year’s rate.