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However, starts on multi-family dwellings with more than five units went the other way, falling 7.7 percent to 396,000. "Homebuyers should be pleased with today's new construction numbers," Ralph McLaughlin, chief economist at Trulia, said in a research note. "This means a healthy dose of new homes will be available this spring in an otherwise inventory-constrained market." However, the number of permits for new housing construction fell 6.2 percent to an annual rate of 1.21 million, driven by a 26.9 percent monthly drop in authorizations for buildings of five or more units, which could indicate falling supply ahead. Kristin Reynolds of IHS Markit said building permits are not affected by weather conditions and therefore are a more accurate indicator than housing starts. "Building permits in February retreated in all areas except the Mid-West," she said. With analysts saying many young people Construction loan Melbourne Oak Laurel Yarraville, 0430 129 662, 4 Beverley St, Yarraville VIC 3013 may be preparing to leave their parents' homes in the current economic recovery, but still reticent to take on mortgages to buy a home, builders have favored the construction of multi-unit buildings to serve the rental market, leaving a tight supply of houses. Despite the monthly decline in construction starts for multi-family buildings, it was still up 11.2 percent over the February of last year. Ian Shepherdson of Pantheon Macroeconomics said the pop in single-family starts was likely due to the unseasonably warm weather and could revert to trend in March, "or worse," but are still rising.