The rate of single-family housing starts and building permits issued dropped to the lowest level in 17 years in January, the U.S. Census Bureau and Department of Housing and Urban Development announced today.

The seasonally adjusted annual rate of single-family housing starts and building permits issued fell for the 10th consecutive month in January, according to the report. The rate of single-family housing starts was 743,000 in January, the lowest since 604,000 in January 1991. And the rate of single-family building permits was 673,000 in January, the lowest level since 587,000 in January 1991.

Indianapolis continued its reign as the most affordable major U.S. housing market, while the Los Angeles area ranked as the least affordable major housing market, the National Association of Home Builders reported today in a fourth-quarter report.

The Housing Opportunity Index ranks metro areas based on the share of homes that are affordable based on the median sales price of homes and median family income for those areas.

Loan servicers and lenders who handle about nine out of 10 subprime loans have agreed to participate in an initiative to help delinquent borrowers by putting foreclosure proceedings on hold for up to 30 days to evaluate alternatives.

The Project Lifeline initiative, targeted at borrowers who are 90 days or more behind on their payments, was announced by six major lenders on Feb. 12 (see Inman News story).

Those lenders — Bank of America, Citigroup, Countrywide Financial Corp., Chase, Washington Mutual and Wells Fargo — say eligible borrowers will be offered workout plans that could lead to formal loan modifications for those who can make payments on new terms for three months.

What real estate slump?

The Bay Area’s rich are still snapping up high-end properties for record sums. On Friday, a mystery shopper agreed to buy the unfinished penthouse at the Millennium Tower for $11 million. That’s $2,288.81 for each of the San Francisco property’s 4,800 square feet, a range rarely exceeded even when the space is built out - that is to say, when it actually includes walls and finishes.

The buyer, who wasn’t identified per the building owner’s policy, put down $1 million to begin the escrow process.

Home prices have outpaced household income throughout California, and in 14 counties the median income needed to purchase a median-priced home is more than double the median household income, according to a report released today.

The median home price in California soared from $200,000 in March 2000 to $470,000 in March 2006, according to “Locked Out 2008,” a report by the independent, nonprofit California Budget Project organization.

About 45.3 percent of California households that own homes spent 30 percent or more of their incomes on housing in 2006. That compares with 29.1 percent of owner households for the rest of the nation. Also, about 27.4 percent of California households spent at least half of their income on housing in 2006, compared with 24.8 percent of all U.S. households.