Dive Brief:

• Housing starts in February fell 17% from January to 897,000 units, the lowest level since January 2014, the U.S. Commerce Department reported Tuesday.
• Analysts attribute the steep decline to harsh weather conditions during the second half of the month keeping builders and buyers at home.
• February starts fell in all four geographic regions. The greatest drop was in the Northeast at 56.5%—its lowest level since January 2009.

Dive Insight:

The sharp drop in February represented the first time since August 2014 that housing starts fell below one million units. Economists, in a poll by Reuters, predicted 1.05 million starts for the month.

Despite this unexpected blow to the housing market's recovery, groundbreakings are expected to bounce back in the coming months as weather conditions improve, wages continue to increase, and more millennials become first-time homebuyers. 

Building permits also rose 3% last month—a good indicator for a coming rebound in new home starts.