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Construction Of Homes Falls To A New Low

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By SHANNON BEHNKEN

sbehnken@tampatrib.com

Published: January 23, 2009

TAMPA - The weakening economy hit area builders extra hard at the end of 2008, when new home starts hit a record low.

Builders started construction on 932 homes in the fourth quarter of 2008, down 33 percent from 1,399 during the same quarter a year ago, according to Houston-based housing research firm Metrostudy.

Builders haven't started fewer homes since Metrostudy began collecting the data 23 years ago. Before now, the record low was in the first quarter of 1991, when builders started work on 1,041 homes. Metrostudy counts starts on homes in Hillsborough, Pasco, Pinellas, Polk and Hernando counties.

The annual start rate was equally bad, down 35 percent during 2008 to 4,730. That was also a record low.

There were 2,617 empty, new homes sitting on the market in the fourth quarter, compared with 3,496 homes during the same period last year. It would take about four years to sell all those homes at the current sales pace, said Tony Polito of Metrostudy's Tampa division.

Builders still haven't chipped away at the oversupply of vacant lots already prepped for construction, Metrostudy said. There are 30,640 empty lots in the five-county area. It would take 61/2 years, or 78 months, to work through that inventory.

Metrostudy's report should come as no surprise, considering the dismal housing market index, released Wednesday by the National Association of Realtors. The January index dropped 1 percent to a record low of 8. An index reading of 50 or more indicates positive sentiment about the market.

Also, new-home construction plunged to an all-time low in December, capping the worst year for builders on records dating back to 1959. The Commerce Department said construction of new homes and apartments fell 15.5 percent to an annual rate of 550,000 units.

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