WASHINGTON (AP) – Homebuilders pulled back sharply on construction of apartment complexes in July, causing housing starts to tumble to a three-month low.
The Commerce Department said Wednesday that housing starts fell 4.8 percent in July to a seasonally adjusted annual rate of 1.16 million. Groundbreakings for multi-family buildings such as apartments slumped 17.1 percent, while single-family house construction slipped 0.5 percent.
Home construction has increased 2.4 percent year-to-date, but the gains have done little to offset the dwindling number of homes listed for sale. The shortage of properties for sale has pushed prices up at a faster pace than income growth, making home ownership less affordable for many would-be buyers.
Housing starts dropped in the Northeast, Midwest and West but rose modestly in the South.
Building permits, an indicator of future construction, decreased 4.1 percent to 1.22 million.