After a strong 1999, national and local builders broke ground for fewer single-family homes in 2000 as a drop in consumer confidence late in the year and rising mortgage rates earlier cut into demand.

        Still, housing construction remained at a healthy level even though builders posted their weakest performance since 1997.

        Rising mortgage rates the first half of last year caused housing starts in Greater Cincinnati to drop 15 percent during 2000, according to figures from local home builders.

        The number of housing starts totaled 5,684 in Hamilton, Butler, Clermont and Warren counties last year, down from 6,762 in 1999, according to the Home Builders Association of Greater Cincinnati.

        In December, local builders started work on 345 homes in the four counties, compared with 377 in December 1999.

        Across the river, builders began work on 1,766 homes last year in Boone, Kenton, Campbell and Grant counties, down from 2,045 in 1999, according to the Home Builders Association of Northern Kentucky.

        Last month, housing starts totaled 137 in those four counties, down from 190 the previous December.

        David Seuberling, president of the Home Builders Association of Greater Cincinnati, said higher rates, rising prices of construction materials and a labor shortage last year cooled housing starts. He also said the market was competing against banner years in 1999 and 1998.

        Still, Mr. Seuberling thinks that lower interest rates and the Tristate's strong business community should shield the local housing market from a major downturn this year.

        The Commerce Department reported Thursday that nationwide, builders started work on 1.59 million housing units last year, a 4.4 percent drop from the 1999 mark of 1.67 million, the highest since 1986.

        “Housing starts took a sizable haircut over the course of 2000,” but the level of activity was still firm, said Ken Mayland, president of ClearView Economics.

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