Housing Starts Drop 6.1% to 10-Year Low

Washington, DC, August 16, 2007—Housing starts in July fell 6.1% to an annual rate of 1.38 million, the lowest rate in decade, according to a Commerce Department report. Building permits were off 2.8% to a 1.37 million annual pace, the lowest since October 1996.

Economists were expecting starts to drop to an annual rate of 1.40 million units, from June’s rate of 1.47 million. Permits were forecast to also drop to a 1.40 million rate.

Starts on single-family homes declined 7.3% in July to a 1.07 million rate. Work on multifamily were off by decreased 1.6% to an annual rate of 311,000.

In the past 12 months, starts have fallen 21% and permits have fallen 23%.

In the South starts fell by 11%. They were off 3.7% in the West and 1.3 % in the Northeast. In the Midwest they rose 2.6%.

The number of homes under construction decreased 1.6 % to a 1.143 million pace. Completions of dwellings fell 0.1 % to an annual rate of 1.512 million.

The number of housing units authorized, but not yet started, decreased 6% to a 194,400 annual pace, today's data showed