By Ruth Mantell
WASHINGTON (MarketWatch) -- Led lower by apartments, construction on new U.S. homes fell 8.5% in January to a seasonally adjusted annual rate of 890,000, according to data released Wednesday by the U.S. Department of Commerce. Economists polled by MarketWatch had expected January's starts to decline to a rate of 914,000 from an original December estimate of 954,000, on lower apartment construction. On Wednesday the government revised December's starts rate to 973,000. Looking at less volatile longer-term trends, starts are up 24% from the same period in the prior year, but remain below a bubble peak of almost 2.3 million in 2006. Starts for structures with at least two units fell 24% in January to a rate of 277,000. Meanwhile, starts for single-family homes ticked up 0.8% to a rate of 613,000, the highest rate since July 2008. The government also reported Wednesday that building permits, a sign of future demand, rose 1.8% in January to a rate of 925,000 -- the highest rate since June 2008. Permits for single-family homes rose 1.9% to a rate of 584,000, while permits for structures with at least two units increased 1.5% to a rate of 341,000.
