New Low For New Home Construction

By: Matt Barbour Email
By: Matt Barbour Email

A new federal report shows new home construction plunged to an all-time low in December, making 2008 the worst year for the industry in decades.

The Commerce Department reports 2008 was the worst year on record for new home construction since 1959. Now those who rely on the industry say they hope positive changes are in store for the future.

James Johnson is a mason contractor and says he knows first hand the decline of new home construction

“It's slowing down, I've not got no calls coming in. I probably have three weeks left of work and hopefully something will come in by then,” he says.

He says the decline is something he first noticed last summer.

“I have three employees right now. I did have five this summer. Just where it's slowing down I had to cut back.”

“Needless to say, being in the building supply industry, I'm disappointed,” said Mike Craft.

Craft is the manager and part-owner for a lumber supply company in Prestonsburg. He says his business is directly affected by the lack of new home construction.

“Our sales are down for this year compared to last year and the year before that. And it's not just the weather, it's the economy and the people's attitude,” says Craft.

Realtor Patty Hatfield says despite tighter lending standards, she still encourages people to pursue building in the market

“I've seen a lot of ups and downs and real estate does go down, but it always does come back up, come back up again,” says Hatfield.

“I believe, it may take it a few years, but it will, everything seems to go in a circle, and it will turn around. I do believe it will,” says Eddie Boyd, a contractor.


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Comments are posted from viewers like you and do not always reflect the views of this station.
  • by Jason on Jan 26, 2009 at 04:59 AM
    Bush and Hoover, it's a toss-up.
  • by Kim on Jan 25, 2009 at 06:46 AM
    Lets get ris of Rogers also--------king of pork.
  • by Hargis on Jan 25, 2009 at 05:18 AM
    down with Bunning and down with McConnell, bet they have never heard of a thing called a budget
  • by Bill on Jan 25, 2009 at 04:38 AM
    This is what happens when you give people loans to buy a 250,000 home. When they make only 50,000 a year.Buying a home worth 50,000,for 250,000.Democrats have ruined us, by forceing loans to people of no means.Now they wil blame the repubs and just steaal more.
  • by William Location: seky on Jan 24, 2009 at 09:44 PM
    around 20 years ago HUD came to south east Ky,and rent went up three times as much for a home, Then on top of the hills people started building mini mansions, Trophey homes,that they could not afford , My Brother calls then a look at me house or , show me home, poor people, I wanderd how was rich enough to build these million dollar homes? My cousins built a lot of them, Brambelwood, 18 room homes and just two people , Now I remember when my cousin lived with our grandmother in a shack on stilts, in one room, a family of five lived in it one of my cousins moved up north and married a millionheir and he died and left her millions and then they came back to seky and started building $500,000 homes and saleing them all is missing is a toilet with golden crown molding, Once she said to my aunt , ( Ohh aunt I love you and when you die Im going to see that your put away in the very best casket) My aunt said Ohhh my honey dont waite until I die give it to me now I could use it.
  • by Karen on Jan 24, 2009 at 05:45 AM
    How can you build a house with no job?
  • by Chester Location: Pike on Jan 24, 2009 at 05:38 AM
    I remember when Clinton was in office(the good ole day) we built 1 house every 2 months now my comapny is lucky to build 2 a year.I can't wait to vote against Bunning.
  • by fed up Location: martin,ky on Jan 23, 2009 at 10:47 PM
    THE WAY THE MONEY STOPPED FLOWING ,WOULD YOU BUILD A HOUSE. I THINK NOT

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