Boston Area Housing Confidence Waning

There are signs that confidence in the Boston area housing market is waning a bit with the latest new home construction data. Many analysts are still trying to figure out why housing starts nose-dived in February.

Privately owned housing starts in February plummeted 17%, down to an annualized 897,000 from the revised January estimate of 1,081,000.

Single-family housing starts in February were at a rate of 593,000; this is 14.9% below the revised January figure of 697,000.

Is Weather to Blame for the Boston Area Housing Downturn?

Some looked at the weather as the primary culprit despite the big drop in the West region, but now thoughts are turning to other factors like whether there’s a skilled labor shortage, or whether younger buyers are still staying on the sidelines.

Here is more in this Fox Business News interview with real estate broker Kendra Todd and Avison Young VP Jason Meister…

It would seem that most of the reason for the lower issuance numbers to this point are actually structural, and not weather-driven. But we’ll continue to keep an eye on new home starts going forward and update you as the Spring and Summer Boston area housing market continues to unfold.
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Also of Interest  New Housing Update for the Boston Area