More bad news for the construction industry -- housing starts have hit a record low, CNN Money reports.

Initial construction of U.S. homes fell to the lowest level on record in January, according to a government report released this week. The rate was down 16.8% from December's revised reading of 547,000, and 56.2% lower than January 2008.

Many economists have blamed the battered housing market for the recent credit crisis; however, the article reports that the drop in building could actually help the struggling market rebound. Home builders continued to construct new homes well after the housing bubble burst, leading to large numbers of unsold homes on the market. An increase in foreclosures has only added to the problem.

However, since demand for homes remains weak, the glut will only ease if fewer new homes are built.