House Construction Falls to 17-Year Low

Washington, DC, April 16, 2008—Home construction fell sharply in March to the lowest level in 17 years, according to the Commerce Department.

Housing construction dropped by 11.9 percent to a seasonally adjusted annual rate of 947,000 units, a far bigger decline than economists had been forecasting.

Foreclosures are forcing property values down by adding to the inventory of unsold homes, prompting buyers to hold out for better prices and undermining new construction.

Building permits also fell in March, likely indicating more problems ahead for the depressed housing industry.