According to an article in the Dallas Morning News, Texas construction starts are expected to drop by more than 20 percent this year due to foreclosures , bankruptcy and the tightening of the credit access for construction companies and investors.
The article said:
“It’s the biggest such fall-off since 1967, according to a report issued Wednesday by analyst McGraw-Hill Construction. The sharpest declines will be in the commercial and institutional construction sectors, where starts are likely to fall by 32 percent. And residential building is forecast to drop another 22 percent – the third year of declines, according the McGraw-Hill Texas forecast.”
With so many properties succumbing to foreclosure, the demand for new construction has fallen off significantly. And foreclosures in the commercial and residential real estate industry aren’t expected to decline anytime soon. A matter of fact, because of an economy that continues to erode, the foreclosure crisis is expected to continue and even worsen.