Posted at: 10/25/2013 6:29 PM
By: Stuart Dyson, KOB Eyewitness News 4
Albuquerque’s economy is staggering a little on the road to recovery, with new home construction taking a dive in September.
New housing permits in the Albuquerque metro area fell almost 23 percent from August to September, making it the lowest month since December 2012 . That means fewer workers employed in good construction jobs, and less money circulating in the economy.
“It’s a very incremental, somewhat fragile recovery for us,” said Jim Folkman, head of the Central New Mexico Homebuilders Association. “It’s all about jobs and until we have more sustained job creation in New Mexico it’s going to be a bit of a struggle for us.”
Folkman said October home construction may be down too, thanks to the federal government shutdown halting federal loan approvals.
“But year to date over last year, we’re still ahead of where we were,” Folkman said. “We think that we’ve turned the corner on the housing recovery.”
Here’s another nugget of sour news to chew on at the end of the week. People in commercial real estate say the big national lending institutions have dropped Albuquerque into the third tier of cities when it comes to big loans for big projects. We were in the second tier, with cities like Austin and San Antonio, but Albuquerque’s slow recovery means less loan money for big multi-million dollar projects.