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Housing Starts Nosedive to Lowest Level Since 1991

Posted Jan 17, 08 9:15 AM CST in Business    Most Covered

(Newser) – Housing starts plunged 14% in December, demolishing median analyst estimates, which foresaw a mere 5% dip. November’s numbers were also revised down, reports the Wall Street Journal, from the 3.7% drop originally reported to 7.9%. When the dust settled, construction was at its lowest point since 1991, after suffering the biggest year-over-year decline since 1980.

Builder confidence remains at historic lows, according to one national index, rising just 1 point this month from December’s record-setting trough. “The magnitude of the housing bubble was unprecedented, and the corrective process promises to be long and painful,” said one economist. Indeed, building permits, which indicate future housing starts, also dropped 8.1% in December.

Source Wall Street Journal

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A worker walks through the framework of a new house in Little Rock, Ark. in this Oct. 17, 2007 file photo. (AP Photo/Danny Johnston, file)   (Associated Press)
The monthly housing starts originally reported in November; the date have since been revised downward along with December starts, which hit lows not seen in 16 years.   (Associated Press)
Workers construct a house in the shadow of the Caltrans Maintenance Workers Memorial Bridge in the Natomas area of Sacramento, Calif., Tuesday, Jan. 15, 2008. The U.S. Army Corps of Engineers and the...   (Associated Press)
A Construction worker frames a new house Friday, Aug. 31, 2007 in Gilbert, Ariz. (AP Photo/Matt York)   (Associated Press)
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