Weak December ends poor year for U.S. home building

American builders ended 2011 with a third straight year of dismal home starts, and the worst year on record for single-family home construction. A decline in housing starts in December—down about 4% from November—contributed to the depressed numbers on the year and offered a stark reminder that a housing recovery is a long way off. Builders started just 606,900 homes last year. That’s only slightly better than figures from the previous two years—and roughly half the 1.2 million economists equate with healthy housing markets. Capital Region Builders Association President Willie Martin says complete local statistics for 2011 are still being compiled, but adds he expects they’ll show stagnancy similar to the national numbers. “2011 was not a recovery year. It was kind of a flat year,” he says. “We’re seeing a slight increase now, and we feel like we’ve hit bottom and we’re coming out of it.” Martin says he expects 2012 to be slightly better than last year, adding many homebuilders in the Baton Rouge area—or those of them left—are still hurting. “A lot of them are struggling and a lot of them have left the business altogether,” he says. “Those who have weathered this downturn are those who were very strong going in.” Martin says most Capital Region homebuilders have abandoned new starts and are now in the remodel business. Speculative home building is also nearly nonexistent, he says, and most new housing starts are at a lower price point than in years past. Read more about 2011 year-end figures on U.S. homebuilding from The Associated Press here. —Steve Sanoski