Housing Starts Rise, While Permits Decline

Washington, DC, Dec. 16, 2010 -- House starts increased for the first time in three months in November, the Commerce Department said.

However, building permits dropped 4% to a 530,000 annual rate, the lowest level since April 2009, and lower than the forecast rate of 560,000.

Housing starts rose to a 555,000 annual rate, up 3.9% from October’s 534,000 pace that was higher than initially estimated.

From the same month last year, housing starts fell 5.8%, while permits were 15% lower.

Construction of single-family houses increased 6.9% to a 465,000 rate, the highest level since April. While permits also rose, by 3%, the 416,000 level of applications in November signals work may slow in coming months.

Work on multi-family homes, such as townhouses and apartment builders, dropped 9.1% to an annual rate of 90,000, a third consecutive decline and the lowest level since June. Multifamily permits plunged 23% to a 114,000 pace.