Starts of single-family units fell 22.5% in February to annual rate of 479,000, virtually identical to the 477,000 low seen in April 2009. New construction for single-family units fell 11.8% to annual rate of 375,000 in February, which is close to the historical low of 360,000 registered in January 2009. Essentially, construction of new homes has failed to rebound from historical lows despite a recovery that is seven quarters old.

On a regional basis, housing starts fell in all four regions of the nation, with the Midwest recording the largest drop (-31%). The number of permits issued for new single-family homes fell 9.3% to an annual rate of 382,000, while permits extended for multi-family units dropped 4.9% to annual rate of 135,000. These numbers bode poorly for housing starts in March. Overall, the housing sector remains mired in problems which are unlikely to be solved until there is rapid increase in hiring.

Asha Bangalore — Senior Vice President and Economist

http://www.northerntrust.com
Asha Bangalore is Vice President and Economist at The Northern Trust Company, Chicago. Prior to joining the bank in 1994, she was Consultant to savings and loan institutions and commercial banks at Financial & Economic Strategies Corporation, Chicago.

The opinions expressed herein are those of the author and do not necessarily represent the views of The Northern Trust Company. The Northern Trust Company does not warrant the accuracy or completeness of information contained herein, such information is subject to change and is not intended to influence your investment decisions.

Comments

LM
20 Mar 11, 16:15

UK housing

Here in the UK the lack of building is seen by many as a positive for the market, by way of throttling supply to keep prices up. I'm sure, if it could get away with it, the UK Government would sooner demolish some of the housing stock rather than see prices fall.

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