Construction of single-family homes in the United States fell to its slowest pace in 17 years in June according to recently released statistics. The US Commerce Department reported that builders began work on new homes in June at an annualized rate of 647,000 units, which is a 5.3% drop from May. That is the slowest pace for new homes in the US since January, 1991.
While single family home starts are not doing well, apartment building starts saw a brief flourish in June. There was a 42.5% surge in apartment building starts, which was due in large part to a change in New York City building codes that led to a rush in applications before July 1. Even with this uptick, apartments have also been started a slower pace than a year before. The annualized rate of 1.066 million new apartments started in June was 26.8% below the level for 2007.
The housing and banking industries are both struggling in the US. These industry sectors are trying to unload record numbers of new and existing homes that are on the market, which is being expanded by increasing numbers of foreclosures. Additionally, many banks and lenders are tightening their lending and credit policies in response to the record defaults. As a result, many people are having a much more difficult time getting loans and mortgages for potential new homes.
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