US housing starts surge in February, building permits rise

Both building permits and housing starts surged across the US in February, according to the Census Bureau, beating forecasts.

Building permits rose 1.9% to a seasonally adjusted annualised rate of 1.51m in February, exceeding market forecasts for a reading of 1.49m to hit the highest level seen since August 2023.

Approvals for the volatile multi-segment increased by 4.1% to 487,000, while single-family authorisations saw a 1.0% uptick to 1.03m - the highest level since May 2022.

Housing starts soared 10.7% month-on-month to an annualised rate of 1.52m, after falling by 12.3% in January, smashing expectations for a reading of 1.42m, amid a persistent shortage of previously owned houses.

Single-family housing starts jumped 11.6% to 1.12m, while the rate for units in buildings with five units rose 8.6% to 377,000.

Starts jumped in the Midwest and the South but fell in the Northeast and the West.

Reporting by Iain Gilbert at Sharecast.com