Construction of new homes tumbles

Builders have slashed construction of new homes to the slowest pace since early 1991 when the country was in a deep recession.
   
The 6.3 percent drop last month was much bigger than the 1.6 percent decrease that had been expected.
   
The decline was steepest in the Northeast where construction dropped nearly 21 percent. The construction of single-family units fell to the lowest level on record.
   
Construction slipped by nearly 17 percent in the West, with single-family building hitting a record low.
   
The Midwest saw a gain of 5.6 percent, reflecting strength in apartment construction. Single-family building, though, was at a record low.
   
In the South, construction climbed, but by only half a percent.
   
And the Commerce Department also finds applications for building permits fell by 8.3 percent on an annual basis, to the weakest level in more than 25 years.
   
The building industry is on pace to construct the fewest new homes and apartments this year since the end of World War II.
   
The housing industry is suffering its worst decline in decades after a five-year boom, triggering severe economic troubles throughout the larger economy.