Housing starts in the US rose in February as strong demand from buyers continued to drive growth in the housing market. According to the Commerce Department, housing starts increased by 10.3% in February to a seasonally adjusted annual rate of 1.42 million units, up from 1.29 million units in January.
The rise in housing starts is a positive sign for the industry, which has been struggling with low inventory and rising prices in recent months. The surge in buyer demand, fueled by low interest rates and a desire for more space during the pandemic, has put pressure on builders to increase production to keep up with demand.
In addition to the increase in housing starts, building permits also rose in February, up 17% from January to a seasonally adjusted annual rate of 1.68 million units. This suggests that builders are planning to ramp up construction in the coming months, which could help alleviate some of the pressure on the housing market.
While the housing market still faces challenges, including rising materials costs and a shortage of skilled labor, the strong demand from buyers and increasing production from builders suggest that the industry is well-positioned for continued growth in the coming months.