In January, housing starts slowed to a 1.25 million-unit pace following upward revisions to December. Starts for the month declined just over 2.5%. That decrease was driven by the highly volatile multifamily segment, which fell 10% for the month. Single-family starts were buoyant, rising 1.9% for the month.
Declines in the multifamily sector were mostly in the Midwest and West; both regions posted highs last month then retraced from those peaks. Declines in the West were also likely exacerbated by recent flooding in the region. The Northeast and South posted higher starts in the multifamily segment.