US Housing Starts Decline, Dragged Down by Multifamily Units

US housing starts fell in March as a pullback in multifamily projects more than offset a pickup in construction of single-family homes.

Beginning home construction fell 0.8% to a 1.42 million annualized rate, according to government data released Tuesday. Multifamily starts dropped 5.9%, while single-family homebuilding increased 2.7% to a three-month high. 

The rise in one-family home construction may reflect builders’ efforts to stoke demand after a spike in borrowing costs sidelined many prospective buyers. With inventories constrained in the resale market, homebuilders have an opportunity to fill the void with new construction.