As fierce winter weather froze housing starts in the Northeast and Midwest, construction of new homes plummeted in February. The Commerce Department says builders started construction at a seasonally adjusted annual rate of 897,000 homes in February, a steep 17% plunge from January. Housing starts slid more than 56% in the Northeast and 37% in the Midwest. Recent job growth, low mortgage rates, and cheaper gasoline have yet to unleash spending by consumers on big ticket items such as housing. Consumers appear to be paying down debt, instead. Builders expect a sharp increase in renters to hit the market. Approved building permits rose 3%, with apartments accounting for the entire gain and offsetting a decrease in permits for single-family houses.
Subscribe to TheStreetTV on YouTube:
For more content from TheStreet visit:
Check out all our videos:
Follow TheStreet on Twitter:
Like TheStreet on Facebook:
Follow TheStreet on LinkedIn:
Follow TheStreet on Google+:
source
