The Commerce Department reported Wednesday that housing starts reached an annual rate of 791,000 last month, the lowest level since the department began tracking starts in 1959. The rate tumbled 4.5% from the revised reading of 828,000 in September.
Note also the magnitude of the drop in the chart below— it is unprecedented, having easily surpassed the 1982 collapse, the present circumstances have now become slightly worse than the 1973-75 fall.
A grim report ….but nothing we didn’t already suspect. An unfortunate reality for the contruction industry. In the end, demand will determine the supply. As we recently learned, supply does not create its own demand. It’s an interesting path we’re on ….eh?
Listen on Sunday 2/21 as my guest John Sutter of ABS (Applied Building Science) explains the Sonoma County Energy Independence Program (SCEIP) and how it is creating jobs for the local construction industry, and how he has re-invented his own business to accomidate his interest in environmental issues, reducing his clients carbon footprint..and utility bill, as well as sustaining his business. It’s a perfect shift.
Listen in Sunday from 9-10 am 1350 KSRO or streaming live at www.ksro.com.