Private housing starts fell 1.6 percent from October to an annual rate of 1.028 million, the Commerce Department reported.
October housing starts were revised up to a pace of 1.045 million from the previous estimate of 1.009 million.
Building permits, a leading indicator of future construction activity, fell 5.2 percent in November to an annual rate of 1.035 million.
The November data reflected the bumpy recovery in the housing market, with home price gains slowing and tight credit conditions on mortgages, which remain historically low.
Compared with a year ago, housing starts were down 7.0 percent in November and building permits slipped 0.2 percent.