The MSM is doing their usual spin to another terrible housing number. We actually consider the contruction of apartments to be on par with single family homes. Apartments are built by corporations to rent out. Single family homes are built when a family signs a contract with a builder. There were a total of 58,000 single family home started in the entire country of 316 million people and 115 million existing households. WOW!!!
The fact is that despite the Wall Street created home price increases in the last year, the real housing market is still DOA. Single family housing starts are always flat and permits for future construction always fall when you are experiencing a housing recovery. Right?
These shitty numbers are before the recent surge in mortgage rates.
Check out that fabulous single family housing recovery, all the way back to 2008 levels, and only 65% below 2005 levels. I might also add that single family starts are below levels during the recession of 1970-1971 when the population was 204 million.
I guess the truth depends on your perspective.
U.S. housing starts up 6.8% to 914,000 in May
WASHINGTON (MarketWatch) – Construction on new U.S. houses rebounded 6.8% in May to a seasonally adjusted annual rate of 914,000 after a large drop in the previous month, the Commerce Department estimated Tuesday. The gain was below expectations. Economists polled by MarketWatch had forecast construction starts in May to increase to a rate of 953,000 from a prior April estimate of 853,000. Starts fell 14.8% in April due to a sharp decline in apartment construction. In May, starts for single-family homes increased 0.3% to a seasonally adjusted annual rate of 599,000, while starts for structures with at least five units jumped 21.6% to a rate of 315,000. Also Tuesday, the government reported that building permits, a sign of future demand, fell 3.1% in May to a rate of 974,000.