Here are the numbers from the Census Bureau’s New Residential Construction Report.
Housing starts surged 9.7%, with single-family starts up 3.7%.
Single-family starts were up in the South, the largest region, and Northeast, the smallest region, but down in the Midwest and West.
Five unit or more starts were up a whopping 19.7%.
Everyone seems surprised by the number. Is it that surprising? Let’s take another look at recent New Home Sales.
Logic would dictate that a surge in starts would follow the surge in sales.
Mike “Mish” Shedlock
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This is more data that the Millennials are finally getting started at household formation.
“The Problem,” always and everywhere, is “regulations.” Aka crass theft by those with asymmetric access to regulators.
Just as is the case with simply obtaining enough pure calories for sustenance, something as simple as obtaining a proper roof over one’s head in a location one wishes to live in, is a “problem” free people solved eons ago. Proper protections from having ones (actual or potential) home stolen, for the benefit of better connected leeches is not, however.
Builders have to keep some product in the pipeline. December and January were strong months for new home sales in the Dallas area, with prices still climbing…
The problem out west is regulations. Voters line up against urban sprawl, its not cost effective to get small projects done, existing housing accordingly has appreciated more, any shack is good enough for a remodel permit. vacant land is actually losing value because of this.