Building Activity at Slowest Pace Since Recession of 1982

Housing starts plunged 5.8% nationwide in April while building permits tumbled 8.7% to the lowest levels since the recession of 1982, the Commerce Department said today.

Private analysts had expected a better report.

“It’s a mess,” said Dick Peach, an economist at the Mortgage Bankers Assn. “We are certainly getting the wind knocked out of our sales. I think it is primarily an interest rate phenomenon.”

April’s rate of 1.2 million new housing starts was the lowest level since a similar showing in October, 1982.

Last month’s building permit rate of 1.1 million was the worst showing since 1 million in September, 1982.

In March, new housing starts nationwide fell 11.2% and building permits dipped by 5%, according to the monthly report compiled by the department’s Census Bureau.