In September, single-family housing starts in the Midwest, Northeast and West hit the lowest paces since government record-keeping began in 1959, and analysts say that some big and small builders may be doomed to fail as the housing slump progresses, according to a Reuters news analysis.

In September, single-family housing starts in the Midwest, Northeast and West hit the lowest paces since government record-keeping began in 1959, and analysts say that some big and small builders may be doomed to fail as the housing slump progresses, according to a Reuters news analysis.

The article quotes Carl Reichardt, a Wachovia Capital Markets analysts: "Builders exiting markets, selling off assets, consolidating with each other, or failing all help rationalize the marketplace in the long run," adding that large public builders had cut the number of communities they were building by 22 percent, on average, as of Sept. 30.

Other analysts stated that some builders are focused on building smaller homes with lower construction costs these days, and that builders will likely expand the use of land-option contracts that give them the right to buy land and serve as an alternative to buying land outright.

***

What’s your opinion? Leave your comments below or send a letter to the editor.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
We are less than 1 week away from Inman Connect! Get your ticket for $99 before prices go up next week.GET YOUR TICKET×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription