US home construction falls 6% in January but permits up

FILE - This Sept. 24, 2020 file photo shows a new home under construction in Houston. The number of newly issued permits to build fresh housing rose 6.2% in November on a seasonally adjusted basis. Housing starts rose 1.2%, and are up 12.8% higher than a year ago, the Commerce Department reported Thursday, Dec. 17, to an annualized rate of 1.547 million. .
FILE - This Sept. 24, 2020 file photo shows a new home under construction in Houston. The number of newly issued permits to build fresh housing rose 6.2% in November on a seasonally adjusted basis. Housing starts rose 1.2%, and are up 12.8% higher than a year ago, the Commerce Department reported Thursday, Dec. 17, to an annualized rate of 1.547 million. .David J. Phillip/AP

WASHINGTON (AP) — U.S. home construction fell 6% in January but applications for building permits, which typically signal activity ahead, rose sharply.

Last month's decline pushed home and apartment construction down to a seasonally adjusted rate of 1.58 million units in January, compared with 1.68 million in December, the Commerce Department reported Thursday.

Single-family construction starts dropped 12.2% while construction of apartment units rose 16.2%.

Applications for building permits, considered a good sign of future activity, were up 10.4% in January to an annual rate of 1.88 million units.