Washington, DC, September 19, 2006--Housing starts were weaker than expected in August as builders adjusted to a slowing housing market.
Housing starts fell 6% in August to a seasonally adjusted annual rate of 1.665 million, the lowest since April 2003, the Commerce Department estimated Tuesday.
Housing starts have fallen in six of the past seven months.
Building permits were off 2.3% during the month to a seasonally adjusted rate of 1.722 million, the lowest since August 2002. Permits have fallen seven months in a row.
Analysts were expected starts to decline about 2.5% to 1.75 million and permits to drop 1.6% to 1.74 million.
Housing starts in July were revised lower to a 3.3% drop to 1.772 million from 1.795 million reported earlier. Permits in July were revised higher to 1.763 million from 1.747 million earlier.
Housing starts are now down 19.8% in the past year. Building permits have fallen 21.9% year-on year.
Starts fell in three of four regions. New construction rose 5.4% in the Northeast, but fell 12.2% in the Midwest, 6.1% in the South and 5.5% in the West.
In the past five months, housing starts have averaged 1.81 million, down from 1.87 million in the five months ending in July and 2.115 million in February.
