Single-family housing starts decreased 4.1 percent to a seasonally adjusted annual rate of 1.230 million units in December. This was 24.7 percent below the pace of single-family starts a year earlier.

?EUR??,,????'??With improving affordability measures, strengthening consumer assessments of home buying conditions and an upswing in applications for mortgages to buy homes, builders are starting to see that the worst is behind them,?EUR??,,????'?? NAHB Chief Economist David Seiders said.

Regionally, housing starts increased in three of four regions in December. Construction of new homes and apartments rose 25.6 percent in the Northeast, 1.8 percent in the Midwest and 12.4 percent in the West. Housing starts declined in the South by two percent over the month. Three of the four regions reported a pace of construction well below a year earlier. Only the Northeast reported a higher pace than a year ago.

Total housing starts for 2006 were at an estimated 1.801 million units, the Commerce Department reported. This was 12.9 percent less than the 2.068 million housing starts reported for 2005.