The Commerce Department reported on Tuesday the housing starts plunged by 9.5 percent m-o-m in April to a seasonally adjusted annual pace of 1.569 million, while building permits rose by 0.3 percent m-o-m to a seasonally adjusted annual rate of 1.760.

Economists had forecast housing starts decreasing to a pace of 1.710 million units last month and building permits rising to a pace of 1.770 million units.

Data for March was revised to show homebuilding growing to a pace of 1.733 million units, instead of increasing at a rate of 1.739 million units as previously reported, and permits advancing to a pace of 1.755 million units, instead of rising at a rate of 1.766 million units as previously reported.

According to the report, permits for single-family homes, the largest segment of the market, dropped 3.8 percent m-o-m in April, while approvals for the multi-family homes segment surged 11.1 percent m-o-m.

In the meantime, groundbreaking on single-family homes tumbled 13.4 percent m-o-m in April, while housing starts for the multi-family increased 4.0 percent m-o-m.