Industry News

Builders’ group economist says real estate downturn rivals 1980s

NAHB does not foresee economic recession

Florida, Michigan, California, Nevada and Arizona have been hit hardest by the housing market decline, and only a few states and a small group of metro areas are showing an increased rate of housing production compared to 2005, according to a report by the chief economist for a builders' trade group. "The economic expansion has lost some momentum, and the slowdown in GDP growth is taking a toll on the labor market -- due largely to the deepening housing contraction," David Seiders, chief economist for the National Association of Home Builders, stated in his report, released last week. The downturn in single-family housing activity "already is as serious as the recession-related downswing of the early 1990s, and our forecast suggests that the current contraction will serious challenge the early-1980s setback by the time the bottom of this housing cycle is reached around mid-2008." "Even so, the U.S. economy is not skating dangerously close to outright recession at this time a...