The number of new single-family homes sold in the United States last year, 775,000, was 40 percent below the peak reached in 2005. The extent of this remarkable bust has varied widely by region, just as the preceding boom did.

As shown in the chart below, the boom was greatest in the South and the West. (These two regions together account for 75 percent of all new-home sales). In terms of the number of units sold, these regions have also experienced the sharpest downturns. However, in percentage terms, the downturn has been most severe in the Midwest. The boom there was modest to begin with, and sales of new homes have fallen by over 40 percent from their peak.

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