NEW CONSTRUCTION HITS RECORD LOWS
Bloomberg
May 17, 2008
Construction of US single-family houses in April dropped to the lowest level in 17 years, even as building of condominiums and townhouses rebounded.
Builders broke ground on 692,000 single-family homes at an annual rate, the fewest since January 1991, the Commerce Department said yesterday in Washington. Total housing starts jumped 8.2 percent to 1.032 million as construction of multifamily units rose 36 percent following a 35 percent drop in March.
Lower prices and other incentives have yet to revive demand for houses, indicating builders will need to come up with even more discounts to attract buyers. Stricter lending rules, job losses and growing pessimism about the economy signal sales will not rebound quickly.
Building permits, a sign of future construction, rose 4.9 percent to a 978,000 pace, reflecting gains in both single- and multifamily units.
