Depressed Home Construction Impedes Economic Recovery

On November 5, 2010, the Wall Street Journal published a chart (see below) that compares the recovery from the Great Recession to the ones following the two most previous recessions–2001 and 1990-91. Most striking, is the difference in what is happening with home construction, which decline by about 40% during the first 18 months after the recession began in 2007.  And housing construction remains at that very depressed level, in sharp contrast to what happened during and following the last two recessions.

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