Building Permits, Current Events, Housing Starts, Meltdown

Housing starts drop in August


From the Wall Street Journal:

Home construction tumbled a second month in a row during August, falling below expectations to the lowest level in 17 years.


Housing starts decreased 6.2% last month to a seasonally adjusted 895,000 annual rate, the Commerce Department said Wednesday. Single-family home groundbreakings also declined, and building permits fell sharply.

Economists surveyed by Dow Jones Newswires expected August starts to drop by 1.6% to a 950,000-unit annual rate. The level of 895,000 was the lowest since 798,000 in January 1991.

July housing starts decreased 12.4% to 954,000, revised down from the originally reported drop of 11.0% to 965,000-unit annual rate. The July tumble reflected a payback for a surge the month before caused by a change to New York City building codes. The city had enacted a set of construction codes effective for apartment building permits authorized as of July 1, and builders rushed for permits during June to beat the deadline; that served to drive up U.S. starts and permits in June.

Reducing the number of starts is a necessary step in order for the real estate market finally to begin to recover. Just don’t plan on that recovery starting anytime soon, though.



START / STOP, originally uploaded by Compound Eye.

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