Weak Economy Continues to Stall Housing Construction

constructionBuilders began work last year on the second fewest number of homes in more than half a century, as the weak economy kept people from buying houses.

Builders broke ground on a total of 587,600 homes in 2010, just barely better than the 554,000 started in 2009. Those are the two worst years on records dating back to 1959.

And the pace is getting worse. The Commerce Department reported Wednesday that builders started work at a seasonally adjusted annual rate of 529,000 new homes and apartments last month. That's a drop of 4.3 percent from November and the slowest pace since October 2009.

In a healthy economy, builders start about one million units a year. They built twice as many in 2005, at the height of the housing boom. Since then the market has been in decline.

One positive sign is that builders appear to be planning more projects in 2011. Building permits, considered a good barometer for future activity, rose 16.7 percent in December to a seasonally adjusted annual rate of 635,000, the best pace since March.

But builders likely pulled more permits in California, New York and Pennsylvania ahead of code changes in 2011 - a factor that likely influenced the spike.

"Some builders went ahead in December with projects to beat the change," said Jennifer Lee, an analyst at BMO Capital Markets. Lee points out that the biggest gains were in the Northeast, which was up 80.6 percent, and the West, up 43.9 percent.

People are buying fewer single-family homes, which represent nearly 80 percent of the market. Demand fell 9 percent to an annual rate of 417,000 units. Apartment building increased 17.9 percent to an annual rate of 112,000 units.

Housing construction fell in all parts of the country in December except the West where activity surged 45.8 percent. Construction dropped 38.4 percent in the Midwest and was down 24.7 percent in the Northeast and 2.2 percent in the South. Severe winter weather likely affected activity in the Northeast and Midwest.

The collapse of the housing market helped push the country into a deep recession and more than a year after the recession, housing is still struggling.

Unemployment remains high. Record numbers of foreclosures have forced home prices down and tight credit has made mortgages tough to come by.

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americandoo

"TIME FOR BIG INVESTORS TO STEP UP TO THE PLATE LEAD AMERICA BY
INVESTING IN AMERICA"



"WHEN YOU INVEST IN AMERICA YOU INVEST IN YOUR
CHILDREN'S FUTURE"

"INVEST IN A LARGE PROJECT THAT WILL MAKE A DIFFERENCE FOR THE FUTURE"

Similar to this idea;

In past history when the USA needed a Moral Boost to our Country we built such
things as;

The Largest Bridges, Dams, Statue Of Liberty, Worlds Largest Futuristic
Fair, Landed on the Moon etc. It is overdue for us and time for us to build the
Largest & Best Futuristic CITY IN THE WORLD, using ALL OF OUR CUTTING EDGE
TECHNOLOGY AND ALL OF CHINA'S, GERMANY, RUSSIA and all other Countries CUTTING
EDGE TECHNOLOGY and BEYOND ALL OTHERS ! !

We need to find a location in the USA somewhere that has the space for our
"FUTURE CITY PROJECT" where our Future City will Utilize all of the Newest and
Cutting edge combined technology in the world to build our City using entirely
GREEN energy with 0 pollution

Our City Could Have A NEW VERSION OF THE STATUE OF LIBERTY, Holding the torch
in one hand and our GREEN PLANET EARTH in her other hand, her head raised high
looking Up at the sky.

This would make a GREAT FILM & Could be based on a True Story with the help of A
TEAM OF BIG MONEY INVESTORS ! ! !

Use your Imagination and think how GREAT THIS WOULD BE FOR AMERICA & OUR
ECONOMY ! !

" COULD BE A HISTORICAL EVENT IN OUR HISTORY BOOKS FOR OUR NEXT GENERATION
TO FOLLOW"

"DREAM BIG...DO BIG"

Thank You, Respectfully, Michael V. Caldwell, Proud American
Inventor/Dreamer..Dream Big..Do Big ! ! !

January 20 2011 at 11:36 AM Report abuse rate up rate down Reply
americandoo

"THINKING OUT OF THE BOX TO STIMULATE AMERICA'S HOUSING MARKET & ECONOMY"

"A VERY VIABLE IDEA & DOOABLE IDEA ! ! ! ! ! "


Why Not Kill 4 Birds With One Stone..

BANKS THAT OWN FORECLOSURES WOULD INSTALL NEW SOLAR SYSTEMS ON FORECLOSED HOMES NATION WIDE.

THESE SOLAR SYSTEMS HAVE TO BE MADE IN THE USA & BE INSTALLED BY AMERICAN'S WHO ARE UNEMPLOYED AND HAVE BEEN RETRAINED TO INSTALL SOLAR SYSTEMS AND THEY WOULD HAVE TO BE WORKING FOR; LICENSED SOLAR CONTRACTORS.

This Program would be offered to HOME OWNERS WHO LOST THEIR HOMES AND HAD GOOD OR EXCELLENT CREDIT BEFORE THEY LOST THEIR HOMES & ALSO FOR FIRST TIME BUYERS ONLY ! !


Independent Appraisers who have no interest in these foreclosed homes could place a value on these homes before the installation of these systems, this would insure that the banks could not pad the Price of the homes and other guidelines would have to be put in place, but this could work to help Stimulate the Economy, be Great for the Environment, Home Buyer's & Banks. "A WIN WIN FOR ALL"


1. This would give Investors and private individuals an extra incentive to buy
these homes thus stimulating the housing economy instantly.

2. This would put more Americans Back to work manufacturing more solar systems.

3. This would cut down on Pollution.

4. This would save money for the owners buying these homes on utilities.

Due to the initial expense of solar systems part of the cost would be added to the home loan, part would be paid by the bank and the government would give the

bank and the homeowner a tax break or whatever details that would be needed to work this out for everyone ! ! THINK POSITIVE THINK AMERICANDOO ! !

This IDEA could be duplicated World Wide putting AMERICA BACK ON THE FAST TRACK.. LEADING THE WAY AGAIN IN NEW INNOVATIVE IDEAS TO STIMULATE THE ECONOMY, PUT UNEMPLOYED TO WORK & HELP OUR ENVIRONMENT AT THE SAME TIME ! ! WINNER WINNER CHICKEN DINNER ! !


Thank You Respectfully, Michael V Caldwell, Always Striving To Be Part Of The Solution Using Respect, Common Sense & Ameri-Can Do Attitude ! !

January 20 2011 at 11:10 AM Report abuse rate up rate down Reply
thedtecter

New housing starts is a false economic indicator, based on the government-created premise that everyone is entitled to own a home. That presumption triggered 4x the demand, escalated home prices that artificially inflated the housing market, and ultimately led to the mortgage backed securities crisis that doomed the economy.

They need to go back to an era before it was a "right" to own a home to establish a normal level for housing starts.

January 19 2011 at 1:47 PM Report abuse +2 rate up rate down Reply
1 reply to thedtecter's comment
mullermugs32

In Pa., a sprinkler regulation was enacted on all new homes. Add another $5k minimum to the cost and up to $10k if you have a well for extra pumping needs. What does the government do that is cheaper for its citizens? I'm sure the insurance industry lobbiest had a hand in this.

January 19 2011 at 10:40 AM Report abuse +2 rate up rate down Reply