The U.S. Census Bureau and the Department of Housing and Urban Development recently reported that the number of new homes to break ground in March fell 9 percent from February’s figure. Construction numbers typically fluctuate during the year, but in 2015 the numbers have been exceedingly volatile, Construction activity dropped in January and March, but had a 6.9 percent rise in February. 

These numbers have been inconsistent for a multitude of factors. First, multi-family home construction has been slowing due to an increased demand for single-family homes over renter occupied apartment units. This is reflected in the fact that single-family home permit applications only dropped 1.2 percent last month, while the overall applications for permits dropped 7.7 percent. Second, bad winter weather has definitely been a factor impacting construction numbers. In the Midwest, which experienced a bad winter, housing construction dropped 21.2 percent. In the South, however, construction only dropped 4.9 percent. Housing construction is a great tool used to fuel the economy, and economists expect the sector to rebound in the coming months.