Single family housing starts hit their lowest pace since January of 1991, down 34.9% from the same month last year to a seasonally adjusted annualized rate of 630,000 units, according to the Census Bureau. Overall starts dipped 33.1% from August, 2007, to a 895,000-unit rate.
The declines should help correct the large inventory of unsold homes.
Through August, some 681,200 homes have been started, down 30.5% from the same period last year.
Building permits dipped 36.4% to a seasonally adjusted annualized rate of 854,000 homes.