Wednesday, February 18, 2009

Housing Starts: The Pain in Spain

by Bill McBride on 2/18/2009 06:40:00 PM

If you thought U.S. housing starts have fallen off a cliff, here is an article on Spain: Biggest developers in Spain start just 135 properties in last quarter of 2008 (hat tip carlomagno)

Just 135 new housing starts in the last quarter of 2008, and not a single one in December: That was the combined output in terms of housing starts for the G-14 group of Spain’s biggest developers ...

Pedro Pérez, President of the G-14, estimates the new build housing inventory at 700,000 properties, though other sources claim that there are more than 1 million new homes on the market ... Pérez also claims that there is demand in Spain for between 400,000 and 450,000 new properties a year, thanks to new household formation and demand for holiday homes from both Spaniards and other nationalities.
I don't know if these numbers are accurate, but it sounds like they could stop building for at least a couple of years.