The home building industry is still experiencing a slow down as a result of the current recessionary climate. According to the U.S. Department of Commerce, construction of new homes in October dropped to its lowest point since April. Contributing to the slowdown in new home construction is an abundance of unsold new homes already on the market and the record-high number of recent home foreclosures. A contributing factor in the lack of new home starts is uncertainty about the extension of tax credits for homebuyers. The low construction level in turn contributes to the high level of unemployment currently being experienced in the construction industry.
In an interview with Fox News, President Barack Obama said the government is considering tax breaks to encourage job growth, but added that continued deficit spending through tax cuts and stimulus funding could in turn diminish people’s confidence in the economy and “lead to a double-dip recession.”