Housing starts and permits tumble in May

[Joseph Burkeson, CMI]

Housing starts and permits tumble in May
New home construction hits lowest in five months as tax credit ends

WASHINGTON - Home construction plunged last month and building permits also fell, the latest signs that the construction industry won't fuel the economic recovery.

Builders are scaling back now that government incentives have expired. The biggest evidence of that trend: single-family homes tumbled 17 percent, the largest monthly drop since January 1991. The struggle in the housing industry is a concern for the broader economy because fewer homes mean fewer jobs across various sectors.

Excerpt: http://www.msnbc.msn.com/id/37725749...s-real_estate/

[Michael Larson]

I'm shocked I tell ya, just shocked.

[Nick Gromicko]

Good. We don't really need any more homes and certainly don't need any new commercial buildings. This country has plenty of vacant inventory already.