By: Bob Willis
Source: bloomberg.com
Builders broke ground on the fewest homes on record in April as a plunge in condominiums and apartment buildings overwhelmed the second straight gain in starts on single-family dwellings.
Housing starts unexpectedly slid 13 percent to an annual rate of 458,000, led by a 46 percent tumble in multifamily starts, which tend to be more volatile, Commerce Department figures showed in Washington. Building permits, a sign of future construction, fell 3.3 percent to a record low of 494,000.
While the homebuilding slump has brought the supply of new properties below the rate households are being created, surging unemployment will temper the likely rebound, analysts said. The plunge in apartments and condominiums also reinforces concern about the impact of the credit crunch on commercial real estate.
U.S. Economy: Housing starts Drop on Apartments, Condominiums
