Single-Family Starts Drop 6.8% as Multifamily Plummets 33%

Single-family housing starts dropped 6.8% in October from the previous month while multifamily starts plummeted 33% to the slowest pace on record. The U.S. Census Bureau reported that single-family housing starts fell to a 476,000 seasonally adjusted annual rate in October from a 511,000 rate in September. Builders held back on starting construction of new homes due to the possible expiration of the $8,000 first-time buyer tax credit, according to the National Association of Home Builders. Congress recently extended the tax credit and expanded it to repeat buyers. "We hope and expect that this will have a substantial stimulative effect on home sales and help keep the housing market solidly on the road to recovery," NAHB chairman Joe Robson said. Meanwhile, construction of multifamily units fell to a 48,000 seasonally adjusted annual rate in October from a 72,000 rate in September. Multifamily starts have fallen 78% since October 2008 as vacancy rates rise and lenders tightening lending standards.