Home Construction Hits Yet Another Low

By Oct 19, 2010, 10:57 PM Author's Blog  

Housing starts and permits usually dominate the headlines on residential construction data day. In September, for example, single-family starts increased a healthy 4.4% (total starts increased 0.3%), and single-family permits rose 0.5% (but total permits declined 5.6%).

Those are certainly important measures, but I also like to look at a third measure of residential activity in the report: the number of single-family houses under construction.

That measure suggests that the housing market has continued to deteriorate in recent months:

Home Construction Hits Yet Another Low

The number of single-family homes under construction at the end of September fell to just 269,000, down about 14% from a year ago. I had once hoped that the housing market was putting in a bottom, with homes under construction plateauing at about 300,000. But we’ve now witnessed five straight months of declines.

  • SHARE:
  • Share on StockTwits


SPY197.667  chart-0.443  chart -0.22%
GOOG543.91  chart-5.42  chart -0.99%
AAPL106.8201  chart-0.5199  chart -0.48%
TSLA235.7624  chart-2.3376  chart -0.98%
BBRY10.53  chart+0.02  chart +0.19%
NFLX375.52  chart-2.58  chart -0.68%
FB73.9756  chart-1.8844  chart -2.48%

Nikkei15658.2  chart+104.29  chart +0.67%
Shanghai0.00  chartN/A  chartN/A
UK6420.08  chart-33.79  chart -0.52%
France4093.72  chart-16.92  chart -0.41%
Germany8998.74  chart-84.069  chart -0.93%