A slowing trend in homebuilding was already taking place prior to last month, and we expect further weakening in economic conditions resulting from last month's attacks, which will slow construction activity even further through the yearend. The Census Bureau's estimate of housing starts is based on a survey of all permits issued during the previous month in approximately 840 permit issuing places across the country. For units authorized by permits that are not started by the end of the month, follow-ups are made during successive months to determine when the units were actually started. Information on housing units that are authorized by local building permits relates to the time of issuance rather than to the actual start of construction. Thus, building permit issuance provides an indication of the residential building activity expected to occur in advance of actual construction.
Housing starts measure the number of units permitted that actually start construction.
Construction usually begins in the same month in which the permit is issued, although several months may pass before start of construction. The U. S. Census estimates that as few as 1 to 2 percent of residential permits never result in housing starts. Inc. All rights reserved.