Cliff Peskin


Dec 17, 2010

Where has all the new construction gone?

While Canadian cities such as Vancouver and Toronto have been throwing up residential buildings as if they were picket fences, U.S. new home construction has been dismal.

There’s evidence now, however, that new U.S housing may be turning a very small corner.

According to Aol Real Estate:

Builders began construction on new homes at a higher rate in November. So-called housing starts increased 3.9 percent last month, according to the National Association of Home Builders, the first time the index has shown an uptick since August. Builders such as Toll Brothers are anticipating a modest recovery in the housing market in 2011, though the large shadow inventory of unsold existing homes makes in unlikely that the recovery will gain much steam in the next 12 months.

Check out the below graph from the calculated risk blog showing just how big the dip in US new construction has been due the collapse of the housing market.

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