The Residential Construction Meltdown

The Anchorage Daily News is coming out with a whopper on residential construction.

http://www.adn.com/front/story/8622623p-8515295c.html

At the same time, home builders are feeling a pinch after several years of sharp growth. Residential construction spending is expected to total $750 million this year, a 3 percent increase over 2006, according to the forecast.

$750 million this year with an increase of about 3 percent? And sharp growth? Where do they get their figures.

http://www.muni.org/iceimages/BSD/january07summary.pdf Decline in permits

http://www.muni.org/iceimages/BSD/january06summary.pdf Decline in permits

http://www.muni.org/iceimages/BSD/feb06summary.pdf Decline in permits

http://www.muni.org/iceimages/BSD/march06summary.pdf Decline in permits

http://www.muni.org/iceimages/BSD/april06summary.pdf Decline in permits

http://www.muni.org/iceimages/BSD/may06summary.pdf Decline in permits

http://www.muni.org/iceimages/BSD/june06summary.pdf Decline in permits

http://www.muni.org/iceimages/BSD/july06summary.pdf Decline in permits

http://www.muni.org/iceimages/BSD/august06summary.pdf Decline in permits

http://www.muni.org/iceimages/BSD/september06summary.pdf Decline in permits

http://www.muni.org/iceimages/BSD/october06summary.pdf Decline in permits

http://www.muni.org/iceimages/BSD/november06summary.pdf Decline in permits

http://www.muni.org/iceimages/BSD/december2006summary.pdf Decline in permits

I work in the construction field and I can tell you that new residenial construction is on the decline and has been on the decline. And it is on the decline in the Mat Su Valley because there is a huge inventory of new residential construction.

Construction dollars do not equate to how many units are being built. And it is misleading to suggest a booming economy by the amount of dollars being spent. Most of the construction dollars are being spent on projects that are dependent on tax dollars.