Housing starts declined to a seasonally adjusted annual rate of 1.795 million units. This was 13.3 percent below the peak pace of a year ago when activity in the housing market was operating at unsustainable levels.

Single-family housing starts were down 2.3 percent for the month to a pace of 1.452 million units, a 16.6 percent drop from the July 2005 pace. Multifamily housing construction was down 3.4 percent for the month to a seasonally adjusted pace of 343,000 units.

?EUR??,,????'??Housing demand has been weakening as affordability has deteriorated and investors/speculators have pulled out of the market, and builders are adjusting their production levels accordingly,?EUR??,,????'?? said NAHB Chief Economist David Seiders.

Issuance of total building permits decreased 6.5 percent in July to a seasonably adjusted annual rate of 1.747 million units, 20.8 percent below the pace of a year ago. Single-family permit issuance was down 6.1 percent on a national basis to a pace of 1.318 million units for the month, reflecting declines in all regions of the country. The pace of multifamily permit issuance was down 7.7 percent to 429,000 units. This pace was 11.4 percent below a year earlier.