Home Construction Falls to Slowest Pace in More Than a Decade

Ap/ nytimes
Washington

Construction of new homes fell in July to the lowest level in more than a decade.

The Commerce Department says construction of new homes and apartments dropped 6.1 percent last month to a seasonally adjusted annual rate of 1.38 million units. That's down almost 21 percent from the pace of activity a year ago, and represents the slowest pace since January 1997.

The July drop follows a 2.1 percent rise in June, which had been driven by a big increase in apartment building.

Applications for building permits, considered a good barometer of future activity, fell by 2.8 percent in July.

Housing construction fell in all parts of the country except the Midwest, which posted a 2.6 percent increase.