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Regional Patterns: Winners and Losers Bernard M. Markstein Director of Forecasting October, 2006

Regional Patterns: Winners and Losers Bernard M. Markstein Director of Forecasting October, 2006

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Regional Patterns:Winners and Losers

Bernard M. MarksteinDirector of Forecasting

October, 2006

History and

Forecast

Starts Growth Q4 05/Q4 04 (%)

10.0 to 0

0 to -10.0

Less Than -10.0

More than 10.0

US: 4.8%

Starts Growth Q4 06/Q4 05 (%)

10.0 to 0

0 to -10.0

Less Than -10.0

More than 10.0

US: -20.1%

Starts Growth Q4 07/Q4 06 (%)

10.0 to 0

0 to -10.0

Less Than -10.0

More than 10.0

US: -0.6%

Total Permit Growth (Y/Y) Aug, 2005

0% to 10%

-5% to 0%

Less than -5%

10% or more

US: 4.17%

Total Permit Growth (Y/Y) Aug, 2006

0% to 10%

-5% to 0%

Less than -5%

10% or more

US: -8.15%

Starts per Capita 2004

6.7 to 10.0

5.0 to 6.7

Less than 5.0

10.0 or more

US: 6.6

Starts per Capita 2005

6.7 to 10.0

5.0 to 6.7

Less than 5.0

10.0 or more

US: 7.0

Starts per Capita 2006

6.7 to 10.0

5.0 to 6.7

Less than 5.0

10.0 or more

US: 6.1

Starts per Capita 2007

6.7 to 10.0

5.0 to 6.7

Less than 5.0

10.0 or more

US: 5.4

Forces driving regional housing

demand

Forces driving regional housing demand

Fallout from hurricanes

Energy prices

Forces driving regional housing demand

Population growth and

household formation