WASHINGTON - U.S. home construction fell in January for a second month but the weakness in both months reflected severe winter weather in many parts of the country. The expectation is that housing will deliver another year of solid gains, helped by an improving economy.
The Commerce Department says builders
started work at a seasonally adjusted annual rate of 880,000, down 16 percent
from December. In December, construction had fallen 4.8 percent. The declines
in both months were blamed largely on the weather.
Applications for building permits fell
in January for a third month, dropping 5.4 percent to a rate of 937,000.
For all of 2013, housing construction
rose 17.7 percent to 976,000 units, the best showing since 2007. Analysts
expect further gains this year as stronger job growth boosts demand.