Despite a September increase, housing starts in Dane County are headed for their lowest annual level in at least a decade, according to a report issued by MTD Marketing Services of Menasha.

The 560 permits issued for single-family homes and duplexes during the first nine months of 2008 are down about 37 percent from 893 permits during the same period last year. That's the lowest number since at least 1998, when MTD began keeping records. The highest number was in 2004, when 1,963 permits were issued during the first nine months.

September's 62 building permits were up nearly 17 percent from the 53 issued for the same month last year — the first time since December that the number of permits has risen year-to-year.

In Madison, 131 permits were issued so far this year, down almost 50 percent from 259 during the first nine months of 2007. Fewer permits than last year also were issued in Fitchburg (37 this year), Mount Horeb (12), Oregon (23), Stoughton (8), Verona (30) and Waunakee (49).

Housing starts were higher than last year in Middleton and the town of Middleton, each with 27 permits, as well as Sun Prairie (60). Cottage Grove (17) and Monona (3) had the same number of permits as last year.