U.S. single-family homebuilding fell by 4.7% to a seasonally adjusted rate of 1.004 million units in January the U.S. Commerce Department’s Census Bureau confirmed. This comes amid extreme cold weather conditions, which are suspected to be a main driver in suspending the start of new housing projects.
Data from December was revised up to a rate of 1.054 million units from an initially reported 1.027 million units. While homebuilding in the Midwest, South, and the West was down, it did rise in the Northeast in January.
Because of a shortage of previously owned homes on the market, homebuilding is expected to rebound in the coming months. There was also a rise in new building permits issued in January, suggesting that a rebound could be underway.