Construction of new single-family homes surged to an all-time high in 2005 but construction activity fell sharply in December, sending a signal that the nation’s long housing boom could be cooling off.
The Commerce Department reported that construction of new homes and apartments fell by 8.9 percent last month, the biggest decline in nine months. Even with the December weakness, construction was started on 2.064 million single-family homes and apartments last year, the second-highest level on record, exceeded only by 2.356 million units built in 1972.
