Home Building Now Bright Spot in Construction

New York, NY, Dec. 17, 2009--Construction starts in November dropped 9 percent from October to an annual rate of $405 billion, according to a report by McGraw-Hill Construction.

Residential building held steady in November with October, while nonresidential and other construction, fell,

Through the first 11 months of the year, total construction was down 28 percent from the prior year at $381 billion on an unadjusted basis.

Overall construction has at least stabilized at a low level, Robert Murray, vice president of economic affairs for McGraw-Hill Construction, said in a press release.

"The negatives of weak employment, tight bank lending, and diminished state fiscal health continue to depress most of the nonresidential building structure types as well as multifamily housing," Murray said.

Nonresidential building in November fell 18 percent from the prior month to an annual rate of $146.1 billion.

Construction of stores fell 17 percent from the prior month; warehouses, were down 22 percent and hotels construction was off 34 percent.

Residential building was essentially unchanged in November from October and came in at an annual rate of $127.6 billion. Single-family housing edged up 1 percent, yet was still 11 percent below the monthly average for 2008.