August Housing Starts: Still Bouncing Along the Bottom

Today’s release of August housing starts added one more month’s worth of data to a disappointing pattern. We continue to bounce along the bottom. Total housing starts in August were at a seasonally adjusted annual rate of 571,000 per year, with single family starts running at 417,000. Housing starts have been stuck at this low level, with little movement up or down since the April 2010 expiration of the homebuyer tax credit.

The litany of impediments to a more robust recovery remains the same: tight credit for both builders and consumers, a glut of foreclosed units depressing prices, faulty appraisals, and weak consumer demand due to the fragile state of the economic recovery, particularly the persistently high unemployment rate.

 



0 replies

  1. New Homes nationally bouncing along sideways, says NAHB

  2. Well stated. We are not going to see improvement until employment begins improving. At least in our local market, employment is the biggest factor holding back the real estate market. (the housing starts graph in my local market looks very similar to the national.)

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  1. August Housing Starts: Still Bouncing Along the Bottom | Wood on Fire – Topics of Lumber Industry
  2. Employment Data Show Increase in Construction Job Openings « Eye on Housing

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