US housing construction plunges

New home constructionsplunged in February
© AFP/Getty Images/File Justin Sullivan

AFP

WASHINGTON (AFP) - Construction of new homes in the United States plunged in February to near record lows and building permits hit bottom, official data showed Wednesday in a dismal report on the ailing housing market.

Housing starts fell to an annual rate of 479,000, down 22.5 percent from January, the Commerce Department said.

That number was the lowest since April 2009, when the economy was still mired in the worst recession since the 1930s Great Depression.

In April 2009, housing starts were a rate of 477,000, the weakest pace since tracking of the data began in 1959. Economists at the time had estimated that it was the slowest pace in new housing construction since the 1940s.

Housing activity was not expected to pick up any time soon, according to the new data.

Building permits sank to a record annual rate of 517,000 in February, a decline of 8.2 percent from the January level, the department said.

That was the smallest number of permits in records dating back to 1960.

© AFP -- Published at Activist Post with license

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