U.S. Housing Starts Continue Decline In November

Washington DC (AHN) - The Commerce Department reported a near 19 percent drop in November new housing starts, marking the fifth straight monthly decline as homebuilders continue to cutback amidst slumping demand.

Housing starts fell to an annual rate of 625,000 in November, well below the 740,000 economists had expected.

The 18.9 percent decline from October is the largest monthly drop since 1984 and puts housing starts down 47 percent compared to November 2007.

Single-family home starts performed slightly better with a 16.9 percent decline to 441,000 homes.

The Midwest region saw the steepest decline in November, with 22.1 percent less housing starts from October. The South region followed with an 18.1 percent decline for the month.

The Commerce Department also said the number of building permit applications in November declined 15.6 percent to 616,000. The result was well below the 700,000 economists had called for.

Building permits are widely viewed as an indicator of housing starts for the coming months. The weak number may mean housing starts will continue to decline in the near future.