Home Construction Slowest in 17 Years

ATLANTA -- Construction of new homes has fallen to its lowest level in 17 years. The Commerce Department report says in June alone, construction of new homes dropped 5.3 percent.

In Metro Atlanta, builders have scaled back in order to stay afloat. In one northwest Atlanta neighborhood, a site supervisor says most builders have stopped building entire subdivisions, opting instead to build one home, make sure it sells, then build another.

One supervisor of a major plumbing company says they've laid off workers and have seen a more than 90 percent decrease in available jobs.

Leading economists are predicting the housing crisis will not improve for the remainder of 2008.

If there is a silver lining, it's part of the report that points out the building application permits, considered a good sign, have gone up about 11 percent.