New Construction of Single Family Homes Slows to Standstill

New construction falls to historically low levels as a result of tightened lending.

By Daniel Thomas 

Builders, in the United States, have slowed new projects to the slowest rate in half a century. A decrease in new construction fell over 25%. This is expected to have a negative effect on the economy but a positive effect on reducing a surplus in inventory. Elements of new construction considered the largest indicators are permits for single family homes which fell over 12%. This is the lowest percentage in over 25 years.

Breaking ground on the construction of new homes fell almost 50%. Numbers decreased dramatically as a result of builders attempting to sell existing inventory. Completed new homes increased just over 3% and homes under construction increased to almost 3%. Additional reasons for decreased sales include a lack of available credit.