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New Housing Starts Lowest In 27 Years

From a seemingly shocked Reuters:

Housing starts see biggest drop since 1984

March 16, 2011

WASHINGTON (Reuters) – Housing starts posted their biggest decline in 27 years in February while building permits dropped to their lowest level on record, suggesting the beleaguered real estate sector has yet to rebound from its deepest slump in modern history.

Groundbreaking on new construction dropped 22.5 percent last month to an annual rate of 479,000 units, according to Commerce Department data released on Wednesday. This was just above a record low set in April 2009 and way below the estimates of economists, who had been looking for a smaller drop to 570,000.

And this news surprised the Reuters economists? That is stunning. They are never wrong. – Except always.

January’s figure was revised up to 618,000 units from 596,000. But that did not change the tenor of the report, which confirmed that the sector is failing to recover despite interest rates near record lows.

Building permits, a hint of future construction demand, fell to a record low of 517,000 units from a revised 563,000, and were down by about 20 percent from levels seen in February 2010

Mind you, the recession have been over for almost two years now.

This article was posted by Steve on Wednesday, March 16th, 2011. Comments are currently closed.

4 Responses to “New Housing Starts Lowest In 27 Years”

  1. proreason says:

    Why are there any new housing starts at all?

    There’s only about a decades supply of newly built houses standing idle right now.

  2. River0 says:

    I’m shocked…SHOCKED! Obama and his ‘progressive’ minions have done such a sterling job of stimulating the economy, providing orderly government and a stable environment for risk taking, calming racial and and ethnic strife, a regulatory environment that allows freedom of movement, and confidence that America has a good system and good people who want everyone to prosper and help their neighbors.

    Why… oh Lord… WHY????

  3. Liberals Demise says:

    Does this mean more illegals in the unemployment lines?
    Will the figures actually be correct (for the first time in years) without
    next week corrections?
    Shock me!!

  4. Media_man says:

    If you think real estate is down now, wait until Bernanke can’t sell his US Treasury Bonds & is forced to raise interest rates to market rates or 6% or higher. And with 20% down payment requirements now becoming standard, the pool of buyers will shrink tremendously.

    It’s difficult to see this turning around anytime soon.

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