Construction of new homes plummeted in April, dragged down by a major drop in apartment building, The Associated Press reports.
Builders broke ground on 10.6 percent fewer new homes last month from the previous month. The seasonally adjusted rate fell to 523,000 homes per year, the Commerce Department said Tuesday. That’s less than half the 1.2 million homes per year that economists consider a sign of a healthy market.
Single-family homes, which make up roughly 80 percent of home construction, fell about 5 percent in April. Apartment and condominium construction plunged more than 28 percent.
Building permits, a gauge of future construction, fell 4 percent.
The weak construction data provided further evidence that the housing industry is far from recovering, analysts said.
