Housing Starts Decline 10% in May

Housing starts fell in May following the expiration in April of a home sales tax credit, the Commerce Department said Wednesday.

Starts dropped 10% to an annual rate of 593,000 units, with single-family units taking their biggest drop since 1991.

The level was below economists’ forecasts of a 648,000 rate, Bloomberg reported.

Building permits, an indicator of future construction, also declined, falling 5.9% to a one-year low. Economists had forecast them to rise to 625,000, Bloomberg said.