Friday, April 16, 2010

Housing Construction Update

1 comment:

Price said...

I'm a little befuddled. It may be because I don't understand the terms, so please correct me if I am wrong.

"Permits" are permits granted before any construction begins (flow). "Starts" are ground-breakings (flow). "Under construction" is any building in-between starts and under-construction (stock). "Completed" are number of buildings that are finished in a time period (flow).

How can the number of buildings under construction be falling as the number that are started is increasing and the number completed is decreasing or remaining the same?

That is, the change in the stock "under construction" should be the difference between "starts" and "completed" (both flows).

Thanks for any clarification!