Today’s New Residential Construction Report continues to firmly demonstrate the intensity and completeness of the washout conditions that now exist in the nation’s housing markets particularly for new residential construction showing tremendous declines on both a peak and year-over-year basis to single family permits both nationally and across every region.Single family housing permits, the most leading of indicators, again suggests extensive weakness in future construction activity dropping 41.4% nationally as compared to May 2007.
Moreover, every region showed significant double digit declines to permits with the West declining 47.1%, the Midwest declining 37.1%, the South declining 41.3%, and the Northeast declining 33.3%.
Keep in mind that these declines are coming on the back of last year’s record declines.
To illustrate the extent to which permits and starts have declined, I have created the following charts (click for larger versions) that show the percentage changes of the current values on a year-over-year basis as well as compared to the peak year of 2004.
Declines to single family permits have contracted measurably in terms of monthly YOY declines, and the fact that we are now seeing declines of roughly 30%-50% on the back of 2006 and 2007 declines should provide a an unequivocal indication that the housing markets are by no means stabilizing.
Here are the statistics outlined in today’s report:Housing Permits
Nationally
- Single family housing permits down 41.4% as compared to May 2007.
- For the Northeast, single family housing down 33.3% as compared to May 2007.
- For the Midwest, single family housing permits down 37.1% as compared to May 2007.
- For the South, single family housing permits down 41.3% compared to May 2007.
- For the West, single family housing permits down 47.1% as compared to May 2007.
Nationally
- Single family housing starts down 32.1% as compared to May 2007.
- For the Northeast, single family housing starts down 38.3% as compared to May 2007.
- For the Midwest, single family housing starts down 42.8% as compared to May 2007.
- For the South, single family housing starts down 37.7% as compared to May 2007.
- For the West, single family housing starts down 48.7% as compared to May 2007.
Nationally
- Single family housing completions down 33.0% as compared to May 2007.
- For the Northeast, single family housing completions down 17.9% as compared to May 2007.
- For the Midwest, single family housing completions down 23.4% as compared to May 2007.
- For the South, single family housing completions down 35.0% as compared to May 2007.
- For the West, single family housing completions down 39.8% as compared to May 2007.
