Housing starts hit record low in April

Housing starts unexpectedly slid 13 percent to an annual rate of 458,000, led by a 46 percent tumble in multifamily starts, which tend to be more volatile, Commerce Department figures showed in Washington. Building permits, a sign of future construction, fell 3.3 percent to a record low of 494,000.

The plunge in apartments and condominiums also reinforces concern about the impact of the credit crunch on commercial real estate.

"This continues to support the story that new construction probably bottoms by early summer," said Adam York, an economist at Wachovia Corp. "We're getting closer but that doesn't mean we're looking for a strong rebound. . . . Obviously, financing remains difficult for builders and buyers alike."

Home Depot Inc. and Lowe's Cos. this week both posted first-quarter earnings that exceeded analysts' estimates, underscoring signs of a turn in the industry.

Confidence among US homebuilders in May rose to the highest level since September, a National Association of Home Builders/Wells Fargo survey showed yesterday. Most respondents, however, still believe conditions are poor.

For single-family homes, construction rose 2.8 percent to a 368,000 rate, the Commerce Department report showed.