Study: Home Building Off 20% in Quarter

Construction of new single-family homes, apartments and condominiums fell 20% in the third-quarter from year-earlier levels, according to information released today by McGraw-Hill’s F. W. Dodge division.

New housing units built in the United States during the three months ended Sept. 30 totaled 299,299, down from 371,792 in the 1989 period, the construction information service said.

Illustrating that the nation’s housing slump has “deepened,” only three of the 25 largest home-building areas--Phoenix, Dallas and Indianapolis--posted year-to-year gains, F. W. Dodge said.

All of the top 10 areas registered declines.

Leading the nation in total housing starts during the latest quarter was the District of Columbia, whose 7,155 units were 25% lower than a year earlier.

Placing second was California’s Riverside/San Bernardino area with 7,075 units, a 28% decline.

Following are the rest of the top 10 housing areas, with the corresponding number of housing starts and percentage decreases:

* Los Angeles/Long Beach, 6,982, 46%.

* Atlanta, 5,806, 37%.

* Detroit, 5,549, 4%.

* Orlando, Fla., 4,934, 5%.

* Seattle/Everett, Wash, 4,822, 24%.

* Las Vegas, 4,784, 49%.

* Sacramento, 4,643, 30%.

* Minneapolis/St. Paul, Minn., 4,233, 19%.

“As the housing slump deepened in 1990’s third quarter, all five major regions of the nation reported declines from their year-earlier totals,” said George A. Christie, vice president and chief economist of F. W. Dodge.

Of the five, the Northeast, with a 36% drop-off, again recorded the sharpest quarterly decrease, while the North and South Central regions had “smaller-than-average” cutbacks, he said.

“Closest to the 20% national average decline in housing starts were the Southeast and the Southwest.”