Construction of new U.S. homes falls 5%

I've said it before, I'll say it again.....untill this improves neither will the economy.

WASHINGTON (MarketWatch) — Builders started construction on fewer new homes in August, government data showed Tuesday, underscoring how the depressed U.S. real estate market shows little sign of recovering.

Housing starts fell 5% to an annual rate of 571,000 last month, compared with a downwardly revised 601,000 in July, the Commerce Department said.

Economists surveyed by MarketWatch had expected housing starts to fall to 590,000 on a seasonally adjusted basis.

Most of August’s decline took place in the Northeast and it was concentrated in multi-dwelling buildings such as apartments. New building tumbled 29.1% in the Northeast while the construction of multi-dwelling units sank 12.4%.