Construction of new homes and applications for future projects both plunged to record lows in January as all parts of the country showed big declines in building activity. The sector is batting on new government programs to stop foreclosures and help stop the sliding construction statistics. According to the Commerce Department, construction of new homes and apartments dipped by 16.8% which is equivalent to about 466,000 units. This is way below the economist-projected 530,000 units for the said period.

Future construction activity may be predicted based on the applications for building permits. This also dipped down to 4.8% equivalent to 521,000 units which is not only below the expectations of economists but is a record low. The slowdown in construction activities is blamed on the continuing housing slump which is considered the worst since World War II. The country’s housing problem has triggered and has worsened the economic crisis.

The construction sector is however hopeful about President Barack Obama’s economic stimulus bill and the immediate plans of the administration to curb foreclosures which has now been recorded at over 2 million for 2008 and is expected to reach 10 million in the coming years.