US housing starts declined in April as construction of single-family homes dropped by the most in nearly a year, suggesting builders are growing cautious amid higher mortgage rates. New residential construction decreased 2.8% last month to an annualised rate of 1.47 million homes, according to government figures released on Thursday. Starts of single-family homes declined 9%, the most since August, to an annualised 930,000 pace. Multifamily housing starts, however, rose more than 10% to the highest level since May 2023. The report also showed single-family permits, a leading indicator of future construction, fell 2.6% to the lowest level since August. The figures suggest home builders remain focused on working off a still-elevated inventory of new properties. …Numerous challenges remain for a sustained pickup in home building, including rising mortgage rates, flagging consumer confidence and stretched household budgets.

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