By the Numbers: Shelter Costs and Housing Starts Increase

The Bureau of Labor Statistics (BLS) and the U.S. Census Bureau released key market indicators for February 2025.

The BLS Producer Price Index (PPI) for final demand remained unchanged in February, following increases of 0.6% in January and 0.5% in December, with a 12-month rise of 3.2%. While final demand goods rose 0.3%—led by a 53.6% surge in egg prices—final demand services fell 0.2%, driven by a decline in trade service margins, particularly in machinery and vehicle wholesaling.

The BLS Consumer Price Index (CPI) rose 0.2% in February, following a 0.5% increase in January, with a 12-month increase of 2.8%. Shelter costs contributed significantly to the rise, while declines in airline fares (-4.0%) and gasoline (-1.0%) offset some of the increase, and energy prices edged up 0.2% due to higher electricity and natural gas costs.

In February 2025, the Census’s New Residential Construction report revealed that building permits for privately-owned housing fell 1.2% from January and 6.8% from a year ago, while housing starts rose 11.2% from January but remained 2.9% lower than February 2024. Housing completions declined 4.0% from January and 6.2% year-over-year, though single-family completions increased 7.1% from the previous month.