One of the three main indicators economists consider when analyzing the real estate market is new home construction activity. To state the obvious, when there is a demand for properties, it makes economic sense for developers to step in and build new ones. But, as we saw in the recent real estate boom and bust, anyone can get caught in a frenzy and, in this case, build a few homes too many. The result: in 2009, new home construction hit its lowest point in this decade.
"If there’s one good thing that can come out of a recession it’s that most things become more affordable. During the course correction, there are definitely some bargains to be had and sometimes increasing your bottom line can be as simple as changing your zip code. We’ve used the most recent data from the Bureau of Labor Statistics, from June 2008-June 2009 to create this map, which shows how US cities have been affected by the economic downturn. In all but one of the cities included, the cost of living is down, sometimes significantly so."
