July 14, 2024

The Commerce Department reported today that construction permits on new US homes fell 3.3 percent from March to an annual rate of 494,000. The pace was the lowest since the data began to be tracked in 1960. Housing starts plunged 12.8 percent from March, to an annual rate of 458,000 units, the lowest level since that data began to be tracked in 1959.

httpv://www.youtube.com/watch?v=tPJQNff0ITk

The good news for San Diego real estate is that this report also showed that the West was the only region showing strength with a 42.5 percent jump in housing starts. Plus,  the National Association of Homebuilders reported Monday that its survey of builder confidence increased for the second straight month in May, reflecting growing optimism on the part of many builders.                                                               San Diego for sale by owner

3 thoughts on “Home Construction Permits Hit Record Lows

  1. We’ve been through this back in the early 90’s remember. It takes a few years to recover. I see new construction slowing down which will cause less inventory and if they decide to build it will be much smaller and with more density type homes. Over building and putting people into homes they couldn’t afford was our first mistake.

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  2. Yes, too many single family homes were being built. That is the result of a production homebuilder’s business model. They can’t help themselves, they have to build a lot of homes to achieve economies of scale worthwhile enough to be a going concern. Very much like a virus, they take over the landscape.

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  3. Our economic condition was caused by lack of regulation, politicians, Greenspan, or any other government entity. It was caused by people taking out mortgages that they are not repaying. Derivatives were only risky investments if borrowers defaulted on their loans. Bank funds only dry up if people default on their loans. Look up and down your neighborhood streets to find the culprits responsible for the economic catastrophy.

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