The graph shows housing starts through November 2010. The combined vacancy rate is calculated through Q3 based on the Census Bureau vacancy rates for owner occupied and rental housing.
- The good news is the total vacancy rate has started to decline
- Homebuilders will complete a record low number of housing units in 2010
- The declining vacancy rate suggests more households are being formed than net new housing units are being added to inventory
- Excess housing supply is being absorbed – albeit, slowly.