Construction of new homes dropped again in April, with 10.6% fewer new homes than in March, according to the Commerce Department, which marks a 25% decline in an annual comparison.

The real estate market is struggling due to high employment, tight lending standards and continually dropping home prices. Although the mortgage rates continue to drop it is doing very little to bring potential homebuyers off the sidelines.

New construction is in competition with the numerous amounts of foreclosures in the real estate inventory. The medium sales price of a new home is 34% higher in March than the sale of a foreclosure.

According to the builder's group, each new home that is built provides three jobs and $90,000 in taxes, this decline in new construction is weighing heavy on the economic recovery of the nation.