Winter Weather Blamed for Drop in Home Construction
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Image Source/Thinkstock(NEW YORK) — Home construction dropped 16 percent in January, the second consecutive month of declines.
David Crowe, chief economist with the National Association of Home Builders, says that the decrease was “almost entirely due to weather.”
Crowe predicted home construction growth of 25 percent in 2014 as compared to 2013, but admitted that February’s numbers may not show signs of improvement due to continuing “abnormal weather.”
“The underlying pent-up demand for houses is still there,” Crowe said, adding that “relatively low mortgage rates are still available.”
Construction figures in December fell about 4.8 percent. In January, applications for building permits dropped by five percent — the third straight month that figure has decreased.
The most noticeable drop in home construction was in the Midwest, Crowe said.
In the Western United States, which avoided most of the extreme weather of the past month, home construction figures actually improved.
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