building bust

[vivianguo]

America's economy has stalled as the building bust deepens and consumers cope with the triple whammy of falling house prices,tighter credit and dearer oil.
What is "building bust"?thanks for your explanation!

[Barb_D]

The amount of new construction has gone way, way down.

[Ouisch]

To amplify Barb's answer just a bit...back when the economy was strong, there was a "building boom," that is, the construction industry was very busy building new multi-story buildings destined to be high-priced rental properties. When the economy began to founder, existing businesses that previously may have considered moving to newer, larger office space decided to stay where they were instead. So now these brand new buildings are mostly empty, with no paying tenants, and the builders who took out bank loans to construct these buildings are having to pay back the bank without receiving any income from renters. Thus, many large building companies or realtors are defaulting on bank loans, which is described as a "building bust" and it adds that much more distress to the already faultering economy.

[vivianguo]

thank you, Ouisch. your explanation has made me clear about the term that has long troubled me! thanks a lot:)