Dive Brief:
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Home construction declined steeply in August, led by a deep plunge in new multifamily building, the Commerce Department reported Thursday.
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Housing starts in the single-family sector dipped by 2.4% last month, far less than the 31.7% downward spiral in apartment construction. That blow came after apartment starts surged 51% in July.
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Overall residential building fell 14.4% in August, after the rate of new construction rose in July to its highest level since 2007.
Dive Insight:
Despite the gloomy numbers, some economists on Thursday said they’re still optimistic about a housing rebound by year’s end. They noted that the brunt of the August bust occurred in the volatile multifamily sector, which is a less reliable economic predictor than single-family construction starts.