Housing Starts Off 2.1% in May, Permits Up 3%

Washington, DC, June 19, 2007--Housing starts dropped 2.1 percent in May to an annual rate of 1.47 million, down from 1.50 million the prior month, according to a Commerce Department report. Building permits rose 3 percent to 1.50 million from 1.667 million.

Economists has forecast a drop to an annual rate of 1.46 million pace, starts were expected to increase to 1.47 million.

Starts for the 12 months ended in May were down 24 percent.

Construction of single-family homes fell 3.4 percent last month to a 1.17 million rate. Work on multifamily homes, such as townhouses and apartment buildings, increased 3.1 percent to an annual rate of 304,000, the most this year.

The drop in starts was led by a 20 percent slump in the West. Construction also fell 1.6 percent in the South. Starts rose 16 percent in both the Northeast and Midwest.