Housing Starts, Permits, Hit Record Lows

Washington, DC, Feb. 18, 2009--Housing starts and building permits fell to new record lows for the second consecutive month, according to the Commerce Department.

Housing starts fell to an annualized pace of 466,000, representing a month-over-month decrease of 16.8%.

Economists were looking for January to show a decline to 529,000. The previous month's reading was revised up to 560,000 from a previously reported 550,000.

Single-family homes - the most important component in the report, accounting for four-fifths of housing starts - fell 12.2% to 347,000, compared to the previous month's 395,000. Single-family units have been falling for 20 of the past 21 months.

Multiple-family homes fell to 119,000, compared to the previous month's 165,000 level.

Meanwhile, building permits fell to 521,000 in January, down from 547,000 in December. The consensus was looking for 525,000 building permits.

Single-family permits fell 8% in the month to 335,000 in January from December's 364,000. Multiple-family unit permits fell to 186,000, up from 183,000 units in December.