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


SPY194.35  chart-2.67  chart -1.36%
GOOG568.27  chart-9.09  chart -1.57%
AAPL99.18  chart-1.57  chart -1.56%
TSLA240.24  chart-2.44  chart -1.01%
BBRY9.95  chart+0.01  chart +0.10%
NFLX438.80  chart-12.38  chart -2.74%
FB76.55  chart-2.49  chart -3.15%

Nikkei15828.67  chart-253.58  chart -1.58%
Shanghai0.00  chartN/A  chartN/A
UK6557.52  chart-65.20  chart -0.99%
France4365.27  chart-50.97  chart -1.15%
Germany9382.03  chart-92.27  chart -0.97%