Housing Starts Off 10.2, Lowest Since 1993

Washington, DC, October 17, 2007--Housing starts dropped 10.2% to an annual rate of 1.191 million following a 1.327 million rate the prior month, the Commerce Department said today in Washington. Building permits fell 7.3% to a 1.226 million pace.

The number of housing starts was the lowest since March 1993. The decline was led by a plunge in construction of townhouses, apartments and condominiums.

Starts were projected to fall to a 1.28 million unit pace, from an originally reported 1.331 million in August.

Permits, a sign of future construction, were forecast to drop to 1.285 million.

Construction of single-family homes fell 1.7% to a 963,000 rate, today's report showed. Work on multifamily homes slumped 34% to an annual rate of 228,000.

The decrease in starts was led by a 28% drop in the Midwest. Construction fell 12% in the South and 10% in the West. Starts jumped 45% in the Northeast.

The number of homes under construction fell 1.4% to a 1.114 million pace and the number of properties completed dropped 8.2% to an annual rate of 1.391 million.

Housing units authorized, but not yet started, decreased 4.2% to 187,400, today's data showed.