U.S. housing starts jumped in March to their highest level in more than a year, offering a sign of resilience in the residential market even as affordability pressures persist, Bloomberg writes.
New construction rose 10.8% to an annualized pace of 1.5 million homes, beating forecasts and reflecting gains in both single-family and multifamily projects. Builders appear to be leaning on incentives to keep buyers engaged despite elevated mortgage rates and economic uncertainty tied to the Iran war, which has pushed up materials costs and weighed on sentiment.
Still, the report carried a note of caution. Building permits, a forward-looking gauge of future activity, fell to their lowest level since August, suggesting builders remain hesitant about sustaining the pace.
Economists say the divergence between stronger starts and weaker permits points to a housing market showing pockets of stabilization but not yet clear momentum. The mixed signals come as broader questions linger about borrowing costs, buyer demand and construction activity through the rest of 2026.
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