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This Chart of New Home Construction Looks Surprisingly Good Despite Biggest Hit in 40 Years
Thursday, April 16, 2020
While the March residential construction
report from the U.S Census Bureau is grim, one can find a small glimmer of
optimism in the fact that, while housing starts fell off a cliff, there was
much less damage done to permits. Perhaps this means builders are envisioning a
pause in construction rather than a total collapse. Robert Dietz, an economist with the
National Association of Home Builders (NAHB) points out that, despite the
mitigation efforts to control spread of the COVID-19 virus, construction can
continue in a majority of states, "as home building is deemed an essential
business activity. We estimate that approximately 90% of single-family units
under construction are located in 'essential' states and 80% of apartment units
are located in such states."
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