# Flatbed report: Housing construction drops more than expected in March

U.S. single-family homebuilding tumbled in March as a resurgence in mortgage rates pushed potential buyers to the sidelines. According to the [U.S. Census Bureau](https://www.census.gov/construction/nrc/current/index.html), housing starts dropped by 14.7% in March to 1.321M vs. 1.480M expected and 1.549M prior (revised from 1.521M). Single-family housing starts ran at a rate of 1.022M, 12.4% below the revised February figure of 1.167M. Building permits also slid more than expected, falling by 4.3% M/M to 1.458M vs. 1.510M expected and 1.523M prior (revised from 1.518M).

According to the National Association of Home Builders ([NAHB](https://www.nahb.org/news-and-economics/press-releases/2024/04/builder-sentiment-unchanged-in-april))/Wells Fargo Housing Market Index (HMI) released recently, “sentiment was flat in April as mortgage rates remained close to 7% over the past month and the latest inflation data failed to show improvement during the first quarter of 2024.

**Market watch**

**_All rates cited below exclude fuel surcharges unless otherwise noted._**

Although the total number of oil and gas drilling rigs has been flat since the start of the year, according to Baker Hughes, rig counts are up 2% in the West Texas Permian Basin, where 51% of rigs are located. Supplying this region with drill pipe and casing is primarily the Houston freight market, where loads moved are up 14% y/y following last week’s 12% w/w increase.

Outbound linehaul rates in Houston have increased by $0.07/mile in the last month. On the number one lane west to Lubbock in the Permian Basin, flatbed carriers were paid an average of $2.13/mile last week. On the number two lane to El Paso, linehaul rates were flat, averaging $2.39/mile on a 13% higher volume of loads moved.

### Load-to-Truck Ratio

Flatbed load post volumes fell for the fourth week following last week’s 4% w/w decrease. Volumes are 4% lower than last year and identical to 2019. Like dry van and reefer, flatbed equipment posts increased under 5% w/w, decreasing the load-to-truck ratio by 4% to 18.94.

### Spot rates

Flatbed linehaul rates remained primarily flat to down slightly for the second week, averaging just under $2.02/mile. Compared to last year, the national average is $0.12/mile lower and $0.02/mile higher than 2019.

### Weekly reports

- [Dry van](https://www.dat.com/blog/category/van-markets)
- [Reefer](https://www.dat.com/blog/category/reefer-markets)
- [Flatbed](https://www.dat.com/blog/category/flatbed-markets)