Starts, Permits Fall to Record Lows

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Source: BIG BUILDER News
Publication date: November 19, 2008

By BB Staff

The unprecedented depth of the housing downturn was evident Wednesday morning in the release of October data on residential housing starts and permits by the Commerce Department: Both fell to the lowest levels on record.

Housing starts in October dropped 4.5% from an upwardly revised September annual pace to a seasonally adjusted annual rate of 791,000, 38.0% below last October. It was the lowest level since the government began tracking residential construction activity in 1959.

Single-family housing starts in October were at a rate of 531,000, down 3.3% from September and 40% from last October to the lowest annual pace since October, 1981.

Likewise, permits were down 12% from September to a seasonally adjusted annual rate of 708,000, 40.1% below last October and a new record low, slipping below the previous low in March, 1975 by 1,000 units. Single family permits were down 14.5% from October to a rate of 460,000, down 43.3% from October 2007 and the lowest annual rate since February, 1982.

Housing completions were down 10.2% from September to a seasonally adjusted annual rate of 1,043,000, 25.6% below October, 2007. Single-family completions fell 7.7% to a rate of 760,000.