Foreclosures, unemployment, tighter lending and unstable prices weigh heavily on the commercial housing sector, but falling demand has not had a similar effect on the cost of materials.
The National Association of Home Builders expects only 550,000 new single-family home starts in 2010, a 63% drop from five years ago but still 25% above 2009. The market downturn has fueled builder bankruptcies, softened real-estate property values and caused an industry leadership rift that led to the formation of a new trade group called the Leading Builders of America (LBA).