Builders slowed the pace of single-family home construction by 5.9 percent for the month to 1.360 million units, a 20.6 percent drop from a year earlier. Multifamily housing construction was down 6.7 percent for the month to a seasonally adjusted annual rate of 305,000 units, 15.7 percent lower than the August 2005 pace.

?EUR??,,????'??We are in the midst of an inevitable adjustment following the housing boom of 2004-2005 when housing market activity soared to unsustainable levels,?EUR??,,????'?? said NAHB Chief Economist David Seiders. ?EUR??,,????'??The downward adjustment to housing production should run its course by mid-2007.?EUR??,,????'??

Regionally, housing starts declined in three of four regions during August. Construction of new homes and apartments was down 6.1 percent in the South, 5.5 percent in the West and 12.2 percent in the Midwest. Housing starts rose in the Northeast by 5.4 percent for the month, following a 12.5 percent decline the month before.

Privately-owned housing units authorized by building permits in August were at a seasonally adjusted annual rate of 1.722 million. This is 2.3 percent below the revised July rate of 1.763 million and 21.9 percent below the August rate of 2.205 million.

Single-family authorizations in August were at a rate of 1.279 million; this is 3.5 percent below the July figure of 1.325 million. Authorizations of units in buildings with five units or more were at a rate of 370,000 in August.

Privately-owned housing completions in August were at a seasonally adjusted annual rate of 1.868 million. This is 3.2 percent below the revised July estimate of 1.929 million and is 4.4 percent below the August 2005 rate of 1.954 million.