U.S. home building fell in February, but permits for new construction reached their highest levels since 2008, showing the uneven nature of the years-long recovery in the sector.

Home construction decreased 1.1% from January to a seasonally adjusted annual rate of 698,000, the Commerce Department said Tuesday.

The reading was well below expectations. Economists surveyed by Dow Jones Newswires had forecast housing starts would rise by 1.3% to a seasonally adjusted annual rate of 708,000.

Construction of single-family homes, which makes up more than 70% of housing starts, fell by 9.9%, the largest drop in a year. Meanwhile, multifamily homes with at least two units, a volatile part of the market, posted a 21.1% gain.