June 16th, 2010
08:54 AM ET
5 years ago

New home construction sinks 10 percent

New home construction fell 10 percent in May.
New home construction fell 10 percent in May.

New York (CNNMoney.com) - New home construction fell sharply in May - the first month after a homebuyer tax credit expired - from a month earlier, according to a government report released Wednesday.

Housing starts fell 10% from April to a seasonally-adjusted annual rate of 593,000 last month, the Commerce Department said. Economists were expecting housing starts to fall to only 655,000.

On a year-over-year basis, housing starts rose 7.8% from May 2009.

Building permits declined 5.9% to a seasonally-adjusted rate of 574,000 from April. Economists had anticipated a more modest decline to 631,000.

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Filed under: CNNMoney.com • Economy
soundoff (14 Responses)
  1. Uncle Sam

    Anyone surprised? Obama propped up home building and sales with the tax credits, they are gone so is his "recovery" in the housing market. Plus, he accelerated and condensed purchases and new homes into the tax credit window.

    June 16, 2010 08:57 am at 8:57 am |
  2. No Incumbents 2010

    Thank Oilbama for the lousy economy. Are you better off than you were 2 years ago?

    June 16, 2010 09:00 am at 9:00 am |
  3. Housing starts fell 10%

    no doubt jobs are needed

    but do we really NEED new homes

    there are SO MANY developments, the prices of homes (an indicator of availability of housing) has dropped dramatically

    some of that is recession, but some of that is just TOO MUCH supply

    June 16, 2010 09:03 am at 9:03 am |
  4. Fair is Fair

    I guess that's what happens when you stop giving people other people's money. Go figure. Who'd have thunk?

    June 16, 2010 09:29 am at 9:29 am |
  5. Fair is Fair

    Now let's wait and see how many of those "homebuyer tax credit" people are in foreclosure in 2 years...

    June 16, 2010 09:30 am at 9:30 am |
  6. Randall in Torrance, CA (USN - Retired) - GOP still sucks

    Everything that is going wrong with America's economy is directly related to past GOP lack of rules and regulations. Maybe this construction crew can drop by Jarge Bush's farm/ranch in tex-ASS and build the former Supreme Imbicile of the Universe a library so he can actually read some books appropriate to his coke-soaked brain level of course.

    June 16, 2010 09:35 am at 9:35 am |
  7. MatthewDetroit

    Good Job Barack.......

    Spending Billions and Trillions BUT YET the housing market continues to crash and unemployment is still very high.....

    Maybe you should have FIXED Fannie and Freddie, but your cronies Barney Frank and Chris Dodd would not have liked that.....

    We are in a hole and we are now twice as deep in debt.......

    Pushing for a Socialist America in 2012.....Vote for Barack OBama.

    June 16, 2010 09:39 am at 9:39 am |
  8. Rick McDaniel

    The artificial stimulus of the government's giveaway to home buyers, could only last so long.

    June 16, 2010 09:49 am at 9:49 am |
  9. Hangar 13

    Unbelievable – the taxpayers stop subsidizing home purchases and fewer people buy homes. Only a Democrat could fail to predict that, or for that matter, believe that a short term "fix" at our expense would do any good. How's that hopey changey stuff working for you? Destroy every free market, interfere in every facet of every life, and then blame Bush when the economy doesn't recover. Oh wait, I forgot, this is CNN. Repugs are stupid, I hate Sarah Palin, socialism is Utopia...

    June 16, 2010 09:57 am at 9:57 am |
  10. bill486

    And what are home builders building....$400,000 McMansions? What the hell happened to 1,700 square ft. & 3 bedrooms? Homes are just too damned expensive regardless-my wife & I don't have to buy a house-ever; certainly not until prices come down to about half of what they are, anyway.

    Let them choke on their damned McMansions.

    June 16, 2010 10:08 am at 10:08 am |
  11. BeverlyNC

    Ever consider we don't need more new construction? When is enough, enough?
    How many houses, new cars, pairs of shoes, closets of clothes, and ridiculous greed do we need to keep chasing?
    Local governments let developers ruin our land with unneeded housing developments and do not require the proper infrastructure is in place first. Roads cannot handle the extra traffic, water/sewer needs cannot be met, and schools are not prepared for the extra students. We the citizens suffer for the constant greed and over-development.
    Americans need to live within their means and focus on what they NEED vs the things they only WANT.

    We need to stop being only a nation of consumers and return to being a country who MAKES products that are superior to the garbage for jobs we sent overseas and now must buy back at lower quality and higher prices.

    The sense of "entitlement" seen in our children and young adults is sickening. You have to work for what you want and you don't need a BMW for high school graduation and house larger than your parents as soon as you leave college.

    Republican "values" of greed and elitism have ruined our country.

    June 16, 2010 10:21 am at 10:21 am |
  12. steve white

    what does people thinks ,with unemployment at 17% and getting worst. The jobs were gone in the early 70's and 80's never to return and the government can't seem to get the big picture

    June 16, 2010 10:26 am at 10:26 am |
  13. Don of Iowa

    Like this wasn't expected by anyone who bothers to think. The so called recovery is still 2 to 3 years away and anyone who thinks otherwise is in for one big disappoinment and probably major loss of cash to boot. The second dip is coming and it will be bigger than the first, The so called Great Recession will come to be known as the Secind Great Depression and it will be 5-10 years before we fully recover if we do not become a 3rd world nation in the mean time.

    June 16, 2010 10:39 am at 10:39 am |
  14. Bob of Lompoc

    Good. Let Mother Earth rest. Stop using Her water and land to build half a million dollar big boxes, because, to quote the Eagles, "Jesus, people bought them". Then we will start the debt thing all over again.

    June 16, 2010 10:51 am at 10:51 am |