Building Permits Hit a Fresh Low

Home building permits hit another all-time low in March with the seasonally adjusted rate weighing in at 513,000 applications, another sign that the housing crisis is far from over.According to new government data, single-family (one-unit) housing starts totaled 361,000 sites (seasonally adjusted), a 7.4% decline from February and an ugly 42% decline from the same month last year. Meanwhile, multifamily starts (five-units or more) fell 15.4% to a seasonally adjusted rate of 132,000 units. Year-over-year multifamily starts plunged 52%. According to Weiss Research, "Tighter funding conditions for construction projects, the large overhang of housing inventory, and the broad economic weakness we're seeing are all conspiring to dampen building activity." Weiss notes that any future recovery "will come in fits and starts, and will take time." Even though the figures were horrible, the National Association of Home Builders said its 'Builder Confidence Index' posted its biggest gain in five years. NAHB chief economist David Crowe said, "we are at or near the bottom of the current housing depression."