Skip to main content

Bad Housing Signs Bode Ill for 2011

John C. Weicher

December’s housing starts left a lump of coal in the housing industry’s stocking, rounding out a dismal year. The seasonally adjusted annual rate of 529,000 in December was the lowest rate of the year, down 8.2 percent from November; and the 2010 total of 587,000 starts was slightly better than 2009 (554,000) but lower than any other year since World War II.

An increase in apartment construction in December was more than offset by a drop of 14.2 percent in new homes, from a November rate of 458,000 to a December rate of 417,000—also the lowest of the year. Unfortunately, two very bad years in a row have not made a substantial dent in the overhang of unsold homes, which is not a good omen for 2011.

Related Articles

Listening Tour

Irwin M. Stelzer

Irwin M. Stelzer hits the listener circuit....

Continue Reading

The Oil Effect

Irwin M. Stelzer

We should “stop thinking about the economy as being in a perpetual crisis” commented Charles Plosser, President of the Federal Reserve Bank of Phi...

Continue Reading

China's False Debate on Values

John Lee

If one wanted conclusive evidence that the ‘Western’ versus ‘Chinese’ or ‘Asian’ values debate is a false one, this would be it....

Continue Reading