**MNI 5 THINGS: US Starts, Permits Dip After Strong January>

--5 Things We Learned From February New Residential Construction Data

By Kevin Kastner

     WASHINGTON (MNI) - The following are the key points from the 

February new residential construction data released Friday by the 

Commerce Department: 

     - February housing starts fell by 7.0% to a 1.236 million rate, 

below the 1.287 million pace expected, but following a small upward 

revision to 1.329 million for the already-strong January data. As a 

result, the first quarter average stands at 1.283 million up from 1.256 

million in the fourth quarter. 

     - Permits posted a 5.7% decline to a 1.298 million rate after 

hitting a 10-year high in the previous month, while those permitted but 

not started fell 1.9%, suggesting starts could decline modestly in the 

coming months. The NAHB index slipped modestly in March, but remained 

elevated. 

     - Starts fell in the Northeast (-3.5%), South (-7.3%) and West 

(-12.9%) after large gains in January, but partially rebounded in the 

Midwest region (+7.6%). 

     - Single-family housing starts rose 2.9% in February, continuing 

their generally upward trend, but that was eclipsed by a 26.1% reversal 

in multi-family starts. Single-family building permits were down 0.6%, 

while multi-family permits were down 14.8%. 

     - Homes under construction were up 0.1% and completions rose 7.8%, 

both to new 10-year highs, so new home supply should see a bump up when 

that data is released on March 23. 

     ** MNI Washington Bureau: 202-371-2121 ** 

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