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


SPY200.14  chart-2.60  chart -1.28%
GOOG510.00  chart-8.63  chart -1.66%
AAPL115.31  chart+6.17  chart +5.65%
TSLA199.37  chart-6.61  chart -3.21%
BBRY10.12  chart-0.44  chart -4.17%
NFLX442.46  chart-11.71  chart -2.58%
FB76.24  chart+0.46  chart +0.61%

Nikkei17598.561  chart-197.17  chart -1.11%
Shanghai3264.366  chart-41.372  chart -1.25%
UK6825.94  chart+14.33  chart +0.21%
France4610.94  chart-13.27  chart -0.29%
Germany10710.97  chart+82.39  chart +0.77%