Home Construction Slowed in December

Washington, DC, Jan. 19, 2011 -- House construction tailed off in December and builders started work last year on the second fewest number of homes in more than half a century, according to the Commerce Department.

Builders began 587,600 homes in 2010, just ahead of the 554,000 started in 2009. Those are the two worst years on records dating back to 1959.

December's pace was a drop of 4.3 percent from November and the slowest pace since October 2009.

However, building permits, considered a good barometer for future activity, rose 16.7 percent in December to a seasonally adjusted annaul rate of 635,000, the best total since March. 

Construction fell across the country in December except the West, where activity spiked 45.8 percent.