Colder-than-average weather was a factor in reduced building activity in January and February, but it cannot be blamed entirely, according to an analysis from real estate data and technology firm CoreLogic.
“The 55 percent January decrease in housing starts in the Midwest cannot be completely attributed to the weather, but it is possible that the increase in February would have been bigger had the weather not been so cold,” the firm said.
CoreLogic came to similar conclusions for the Northeast and South, but did not offer alternative explanations for the decline.
“Past severe winters that have negatively affected housing starts were followed by a rebound after temperatures began to rise again. This analysis indicates there should be a rebound again this spring, but it will not be sufficient enough to counteract the current weakness in the market that can’t be blamed on the weather,” the firm said.