“Nearly two years after the recession ended, the pace of construction is inching along at less than half the level considered healthy. Single-family-home building, the bulk of the market, has dropped 11 percent in that time. And there’s no sign it will improve soon.
Builders are struggling to compete with waves of foreclosures that have forced down prices for previously occupied homes. The weakness is weighing on the economy.
Though new homes represent a small portion of overall sales, they have an outsize impact on the economy: Fewer new homes mean fewer jobs.”