U.S. Housing Construction Hits Two-Year Low
The United States Commerce Department on Tuesday said that the number of new homes constructed in the country has drop by 22.5 percent to an annual rate of 479,000 while building permit application fell to record low.
A new data released by the United States Commerce Department on Tuesday showed a significant drop in new home construction, the lowest in two years.
Based on the report, the Commerce Department said that construction of new homes in the U.S. fell to an annual rate of 479,000 or at least 22.5 percent drop from the previous month’s level. The figure was the lowest since April 2009.
Also, the government said that applications for new building permits has hit bottom last month as Americans continued to hold spending on new homes.
According to the data, the number of new building application dropped to a record of 517,000 last month, down by at least 8.2 percent from January level – the lowest number of permits in records dating back to 1960.
It will be recalled that in April 2009, the U.S. housing market posted a dismal output in terms of housing construction with only 477,000 new homes built – the weakest pace for the sector since tracking began in 1959.
It was also the height of the worst global financial crisis since the Great Depression in the 1930s.
Many analysts expected not to have major recovery in the housing sector any time soon, noting the slow economic recovery process in many of the states.