The US Commerce Department reported Wednesday that construction of new homes fell 8.5% in January to a seasonally adjusted 890,000 annual rate. vs revised 973,000 in December.
At the same time the building permits, which are considered to be the sign of future demand, rose 1.8% in January to 925,000. The rate is highest since June 2008.
Starts for structures with at least two units fell 24% in January to a rate of 277,000, the government reported Wednesday. Meanwhile, starts for single family homes grew up 0.8% to a rate of 613,000, the highest rate since July 2008.
By region, starts dropped 50% in the Midwest and 35% in the Northeast. Meanwhile, starts rose 17% in the West and 4% in the South.
Compared to the same period of 2012, starts are up 24% but remain below a bubble peak of almost 2.3 million in 2006.