Friday, March 18, 2011

SINGLE FAMILY BUILDING PERMITS DROP 20% FROM LAST YEAR

Housing starts nosedived in February by 22.5 percent compared to January 2011, the lowest in two years and marking the second lowest level on record according to the New Residential Construction Report released by the Commerce Department.



Privately owned housing starts were at a seasonally adjusted rate of 479,000 units, which was 20.8 percent lower than a year earlier.



Single family housing starts for February were at a rate of 375,000 units, which was 11.8 percent below the January figure of 425,000 units. The February rate for units in buildings with five or more units was 96,000 which was nearly half of January’s total of 181,000.

Building permits dropped as well too. Permits authorized in February were at an annual rate of 517,000, which was 8.2 percent below January’s rate of 563,000 and 20.5 percent below February of 2010 which was 650,000.

Building permits for single family homes were issued at a rate of 382,000, which is 9.3 percent below the January figure of 421,000. Building permits for buildings with five or more units was at a rate of 121,000 in February which was down from 123,000 units in January.

Building permits are a sign of future building activity and would indicate a further slowdown in future new home construction.

No comments: