New record for single-family housing starts in February

The National Association of Home Builders (NAHB) reported that single-family housing starts set a new all-time record in February. In addition, the multifamily construction market showed signs of better health as the job market strengthens.

Housing statistics are considered a good early indicator of future demand for lawn care and landscape services.

"Home ownership continues to plow ahead," said David Seiders, NAHB chief economist. "Builders are reacting to strong demand in the single-family home and condominium markets, both of which continue to cry out for supply. Stronger job prospects also are fueling the rental market."

However, Seiders added that NAHB expects to see demand plateau later in the year as interest rates rise.

NAHB issued its analysis in response to the U.S. Commerce Department's report on February construction statistics. Total housing starts increased by 0.5 percent to a seasonally adjusted annual rate of 2.195 million units, setting a new 21-year-record for the second month in a row. The February construction pace was also 15.8 percent above a year ago.

The rate of single-family home construction reached 1.775 million units, a new record for the second month in a row. The pace was 0.3 percent above the January rate and 16.7 percent above February 2004.

Multifamily housing starts increased to a seasonally adjusted rate of 420,000 units in February, 1.7 percent above the January pace and 12.3 percent above a year earlier.

For more info:

"Housing starts peak again in February," NAHB press release, March 16, 2005.

"Rental market indicatorsimproving, condos still strong," NAHB press release, March 17, 2005.