1. Regional Patterns: Winners and Losers Bernard M. Markstein Director of Forecasting October, 2006

2. History and Forecast

3. Starts Growth Q4 05/Q4 04 (%) 10.0 to 0 0 to -10.0 Less Than -10.0 More than 10.0 US: 4.8%

4. Starts Growth Q4 06/Q4 05 (%) 10.0 to 0 0 to -10.0 Less Than -10.0 More than 10.0 US: -20.1%

5. Starts Growth Q4 07/Q4 06 (%) 10.0 to 0 0 to -10.0 Less Than -10.0 More than 10.0 US: -0.6%

6. Total Permit Growth (Y/Y) Aug, 2005 0% to 10% -5% to 0% Less than -5% 10% or more US: 4.17%

7. Total Permit Growth (Y/Y) Aug, 2006 0% to 10% -5% to 0% Less than -5% 10% or more US: -8.15%

8. Starts per Capita 2004 6.7 to 10.0 5.0 to 6.7 Less than 5.0 10.0 or more US: 6.6

9. Starts per Capita 2005 6.7 to 10.0 5.0 to 6.7 Less than 5.0 10.0 or more US: 7.0

10. Starts per Capita 2006 6.7 to 10.0 5.0 to 6.7 Less than 5.0 10.0 or more US: 6.1

11. Starts per Capita 2007 6.7 to 10.0 5.0 to 6.7 Less than 5.0 10.0 or more US: 5.4

12. Forces driving regional housing demand

13.  Fallout from hurricanes  Energy prices

14. Forces driving regional housing demand  Population growth and household formation