WASHINGTON — U.S. developers broke ground on more homes last month, but the increase occurred entirely in apartments. The construction of new single-family houses fell.

The Commerce Department said Tuesday that housing starts rose 3.2 per cent in November from the previous month to a seasonally adjusted annual rate 1.26 million. Despite the increase, that is down 3.6 per cent from a year ago. Single-family starts dropped 4.6 per cent in November and are down 13.1 per cent from a year earlier.

Some of the data likely have been distorted by extreme weather. Home-building jumped 15.1 per cent last month in the South in the aftermath of Hurricanes Florence and Michael. And home construction fell 14.2 per cent in the West, possibly because of wildfires in California. Single-family homebuilding fell in the West by the most since February 2009.

Still, rising mortgage rates have dragged down home sales in the past year, discouraging many builders and causing a slump in the overall housing market. Sales of new and existing homes are dropping and home price gains are slowing.

The unemployment rate is at a five-decade low and incomes are rising more quickly, but many would-be buyers struggle to find homes they can afford. Developers say that rising labour and materials costs make it harder for them to build more affordable properties.

“Rising home prices and mortgage rates have created high hurdles for homebuyers, while cost increases have made it difficult for builders to deliver homes at the most in-demand price points,” said Danielle Hale, chief economist at realtor.com.