Washington, DC, April 18, 2006—Housing starts dropped 7.8% to a seasonally adjusted annual rate of 1.960 million units in March, the lowest level in a year, according to the Commerce Department.
Economists had anticipated a decline to a level of 2.04 million units from a revised 2.126 million in February.
Starts of single-family homes fell 12.0% to a seasonally adjusted annual rate of 1.591 million.
Starts in February were revised upward to a reflect a decline of 7.8% to 2.126 million units, they were originally estimated as having declined 7.9% to 2.120 million.
Starts had jumped 16% in January to a 33-year high because of warm winter weather.
Despite the weakness in February and March, starts are up 6.9% on a year-on-year basis.
Building permits in March were off 5.5% during the month to a level of 2.059 million units at an annualized rate. This is the biggest decline in permits since September 1999. Permits are also at their lowest level in a year. Permits reported in February were at a pace of 2.179 million units.
Building permits for single-family homes dropped 6.9% to a 1.542 million in March.
New construction dropped across the country. Starts fell 15.5% in the West, 8.2% in the Midwest, 4.8% in the South and 0.5% in the Northeast.
