Obviously demonstrating the persistence of the dramatic downtrend in the US housing market, today’s “New Residential Construction Report” provides additional evidence that residential real estate is experiencing a protracted decline. Popularly reported as showing a 6% decline in housing starts from last months revised figure, the report, if viewed more thoroughly, displays many, far more significant declines.
Particularly interesting is that this months report show that virtually every indicator is now recording double digit year over year declines, with the South and Midwest regions now on par with the more depressed figures of the Northeast and West regions.
Here are the statistics outlined in today’s report:
Housing Permits
Nationally
- Single family housing permits down 3.5% from July, down 25.0% as compared to August 2005
Regionally
- For the Northeast, single family housing permits down 1% from July, down 27.4% as compared to August 2005.
- For the West, single family housing permits down 2.3% from July, down 31.2% as compared to August 2005.
- For the Midwest, single family housing permits down 8.2% from July, down 28.5% as compared to August 2005.
- For the South, single family housing permits down 2.9% from July, down 20.3% compared to August 2005.
Housing Starts
Nationally
- Single family housing starts down 5.9% from July, down 20.6% as compared to August 2005.
Regionally
- For the Northeast, single family housing starts down 7.9% from July, down 19.3% as compared to August 2005.
- For the West, single family housing starts down 4.4% from July, down 33.4% as compared to August 2005.
- For the Midwest, single family housing starts down 12.9% from July, down 28.7% as compared to August 2005.
- For the South, single family housing starts down 6.1% from July, down 9.9% as compared to August 2005.
Keep in mind that this particular report does NOT factor in the cancellations that have been widely reported to be occurring in new construction.
As further reports are released, cancellations should show an even greater effect on permitting, starts and completions.
