The U.S. construction sector experienced a noticeable slowdown in March, with building permits and housing starts both declining compared to February. Privately-owned housing units authorized by building permits were recorded at a seasonally adjusted annual rate of 1.46 million, marking a 4.3% decrease from February's revised rate, although there was a slight 1.5% increase from March of the previous year.
According to the latest report from the U.S. Census Bureau, single-family home authorizations fell to 973,000, a reduction of 5.7% from the previous month, while authorizations for units in buildings with five units or more were at 433,000. Housing starts also saw a significant reduction, retreating to 1.32 million, a 14.7% decrease from February and a 4.3% decline from the same month last year, with single-family starts leading this drop by 12.4%.
Housing completions in March followed a similar trend, dropping to a rate of 1.47 million, which is 13.5% below the revised February estimate and 3.9% lower than March 2023. Completions of single-family dwellings fell by 10.5% to 947,000 units.
