The annual rate for privately owned housing starts declined to 2.12 million units in February, according to a report released by the U.S. Deptartment of Commerce and as reported by the National Association of Realtors. The February construction pace was down 4.8% from a year ago. Single-family housing starts decreased 0.4% from February 2005, to a rate of 1.8 million units, while starts for buildings with five or more units fell 25.3% to 275,000. The number of building permits issued, which can be an indicator of future building activity, edged up last month, climbing 2.5% from one year earlier to a seasonally adjusted annual rate of 2.15 million permits.

Regionally, the South posted the largest increase in housing starts at 2.3%, followed by a 0.2% increase in the West. The rate for privately owned housing starts declined 12.1% in the Northeast and fell by 24.7% in the Midwest.