Housing Starts, Permits Decline in December

Washington, DC, Jan. 19, 2012 -- New construction of U.S. houses fell back in December after a strong gain in the previous month, the Commerce Department said.

Starts fell 4.1% in December to a seasonally adjusted 657,000 annualized units, weaker than the 695,000 pace expected by economists.

Starts had jumped 9.1% in November to 685,000.

Building permits, a sign of future construction, also edged down 0.1% in December to a seasonally adjusted annual rate of 679,000.

The decline in starts in December was due to a drop in the multi-family market.

For all of 2011, housing starts rose 3.4% to an annual pace of 606,900, up from 586,900 in 2010. Single-family starts hit a record low 428,600 in 2011.

Building permits for single-family homes rose 1.8% to a 444,000 rate last month.