Figures released this morning showed U.S. home building tumbled in April and permits fell, suggesting the housing market continued to tread water amid shortages of land and skilled labour.
The U.S. Commerce Department said housing starts dropped 3.7% to a seasonally adjusted annual rate of 1.287 million units in April, a drop that reversed March's rise.
Data for March was revised to show starts rising to a 1.336 million-unit rate instead of the previously reported 1.319 million-unit pace. Building permits fell 1.8% to a rate of 1.352 million units.
Economists had forecast housing starts falling to a pace of 1.310 million units last month and permits declining to a 1.350 million-unit rate.
Single-family home building, which accounts for the largest share of the housing market, edged up 0.1% to a rate of 894,000 units last month. Single-family home building has lost momentum since setting a 948,000-unit pace last November, which was the strongest in more than 10 years.
