U.S. home construction dropped sharply in April

Real Estate

A carpenter aligns a beam for a wall frame at a new house site in Madison County, Miss., Tuesday, March 16, 2021. U.S. home construction fell by a bigger-than-expected amount in April but the drop came after housing had risen to the highest level in 15 years. The Commerce Department said Tuesday, May 18, that construction dropped 9.5% in April to a seasonally adjusted annual rate of 1.57 million units. % in April to an annual rate of 1.76 million units, a good sign that the April dip in construction will be temporary. (AP Photo/Rogelio V. Solis)

WASHINGTON (AP) — U.S. home construction fell surprisingly sharply in April, but the drop came after housing had risen to the highest level in 15 years. 

Construction dropped 9.5% in April to a seasonally adjusted annual rate of 1.57 million units, the Commerce Department said Tuesday.

That was down from a rate of 1.73 million units in March, which had been the best showing since the peak of the housing boom in 2006.

The report showed that applications for building permits, considered a good sign of future activity, rose 0.3% in April to an annual rate of 1.76 million units, a good sign that the April dip in construction will be temporary.

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