The spin is old here but I imagine the Board of Fabrication could not come up with anything else. Here is the skinny. Homebuilders live off the builders loans. They pay themselves as well as suppliers and staff. A builder's loan is short term, expensive and easy to get if you have good credit and a relationship with the lender. Builders will build as long as they can get credit. When sales and prices slump, the builders loan becomes their sole source of income.
Anyone who says an increase in housing starts means a rebound in the real estate market might consider the above. If it did then an increase in housing starts when the housing market is a buyers market at lower price means a GLUT of unsold homes coming up. It means builder bankruptcy will rise significantly. Bankruptcy law still works for a builder, but not a credit card user.