• March housing starts rose 19.4% from February and 37% from a year ago, to 1.739 million (SAAR), according to the U.S. Census Bureau.

• Building permits rose to 1.766 million, up 2.7% from February and 30.2% from March 2020.

• Builders completed 1.58 million homes in March, up 16.6% month-over-month and 23.4% year-over-year.

After stalling in February in large part because of poor winter weather, home construction activity kicked back into high gear in March as builders proved themselves resilient despite persistent constraints posed by rising costs and regulatory challenges. As conditions improved, builders were quick to ramp up production and regain the form that has been powering activity at a rate not seen since prior to the Great Recession. Builder confidence remains high, and home starts reached their highest levels since 2006, even as the price of building materials – particularly lumber and steel – continue to spike. A steady stream of buyers and a persistent shortage of available for-sale homes continue to provide justification for new projects even as cost uncertainty mounts. But there is no avoiding the fact that prices of key materials are rising at their fastest rates in decades, and availability is often limited due to pandemic-driven supply chain disruptions. The question now is whether this enduring optimism can continue to translate into activity, and if a continuation of these conditions will eventually force builders to throttle back. For now, though, today's report offered nothing but good news for builders and buyers alike.

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