NEW YORK (TheStreet) - The U.S. Department of Commerce reported roughly 1.047 million housing starts for the month of September on Wednesday morning, the lowest number since March of 2015 and a 113,000 unit drop from August.

First American Financial Chief Economist Mark Fleming chalks up the sudden dip to a broader transition in the housing market.

"Single-family housing starts are actually up 5% year-over-year," he said Wednesday on BloombergTV's "Bloomberg Markets." "Where the overall loss happened was really in multi-family housing starts...they've really been what's driving housing starts over the last couple of years overall. We're transitioning away from multi-family to more single-family for some very important reasons."

Millennials are beginning to transition to single-family homes, Fleming explained.

"Most of the research shows that millennials, this new demographic force of demand for housing, still want to be homeowners," he said.