The already grim housing market suffered yet another setback Tuesday as officials announced that home construction plunged even further last month, sinking to its lowest level in nearly three decades.
Meanwhile, building officials were skeptical of President Bush’s plan to freeze interest rates for certain subprime mortgages, saying it would have little if any impact on local housing woes.
The latest snapshot of the city’s building activity, released Tuesday by the Development Services Department, showed that only three single-family building permits were issued in November, the lowest monthly total in at least 27 years.
Officials said city permit records only stretch back to 1980, making it difficult to pinpoint the last time construction was this stagnant.
“I don’t even need to say anything,” said Bud Schulz, executive director of the Colorado River Building Industry Association. “The numbers speak for themselves.”
Nonresidential construction, the lone bright spot for builders the past several months, fell dramatically in November. Commercial projects totaled about $1.4 million last month, down from $12 million in October.
“If it weren’t for the mall activity, the dollar amounts would be considerably lower,” Schulz said, referring to the development of an open-air retail mall on the city’s north side.
Home construction has been in a tailspin since 2006, with single-family building permits hitting a 25-year low this past fiscal year. Those figures have tumbled even more in recent months, falling from 17 to 7 to 3 since September.
“If this trend continues, then it will affect the entire economy of the city,” Schulz said. “Appliance stores will not be selling appliances. Lumberyards will not be selling lumber. It’s all tying together.”
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