Posted on 03/16/2023 6:31:03 AM PDT by Kaiser8408a
Now that The Fed-induced-banking crisis has cooled … for the moment … I can focus on that mysterious positive homebuilder sentiment release from yesterday.
The sentiment was driven by 5+ unit (multifamily) starts which were up 24% in February, which 1-unit (single-family detached) starts were up only 1.10%. 23 consecutive months of NEGATIVE real wage growth and still ultra-high home prices begat lots of multifamily housing starts.
The problem for Americans is the real weekly wage growth has been negative for 23 consecutive weeks while home prices remain high, particularly after the Covid bailout by The Fed.
Here is the rest of the story.
So, 1-unit detached housing is snookered.
(Excerpt) Read more at confoundedinterest.net ...
Cabrini-Green part deux?
On the contrary, he has done far more to advance his constituent's agenda than any other President in modern history, and is hell bent on breaking the USA beyond repair by the end of his first term.
You’ll own nothing…and be happy!
>>Cabrini-Green part deux?
Not necessarily. It could be Pruit-Igoe part 2, or Pink Houses part 2, or ...
while conservatives have accomplished squat. Outside of Libertarians, their movement is useless.
I’m in West Michigan, and work for a civil engineering firm where I do mostly private development projects. Multi family residential and industrial projects are still piling up, waiting to get designed and built. Not so much commercial.
I don’t understand it, and neither do some of our clients, but it’s pedal to the metal for some reason. Makes me wonder if they instinctively, or by some other means, think/know that it’s only going to get worse; make hay while the sun shines.
We have one client that only builds (with cash) large mfg facilities when things are at their lowest and about to rebound. Haven’t seen them lately, but I’m watching for them.
I love the picture of Janet Yellen at the slot machine on the header picture from Confounded Interest.
In reality the US has a huge shortage of housing. Which is why most housing markets, with the exception for places like Nashville have held over the last six months. There are NOT enough houses available for the current demand.
This is especially the case in the northeast and midwest. There is a shortage of apartments and smaller retirement type housing.
Our country demographically is getting older. We are not in as bad shape as Italy, Japan or South Korea but the Baby Boomers are all retired or with 5-7 years of retirement. So, most of these Boomers are looking to downsize(like me).
This is increasing the demand for smaller houses, condos and apartments.
Apartment prices in many cities are over $2500-$3000 for a two bedroom apartment. There is a shortage of apartments in most metro areas.
This is also being caused by the Millenials not getting married and having kids like the Baby Boomers did. IF you do not have kids, you are less likely to move to the suburbs that have the better schools. If you do not have kids, you do not care about the local school system.
Unchecked immigration leads to higher housing prices/rent. Imagine that.
And at just two years and two months, they’ve done all this damage FASTER than any other administration/regime.
And, they still have one year and ten months, along with the Senate, DOJ and the media along side of them to accomplish much, much more . . .
Every time somebody whines about a housing shortage, I note apartment like condos going up like daisies, with lower occupancy than China. It’s almost like somebody is prepping the US to get an enormous inflow of foreigners that need housing. Has anyone else noticed this?
“Conservatives,” especially in the Senate, are Biteme’s direct accomplices.
We have one client that only builds (with cash) large mfg facilities when things are at their lowest and about to rebound. Haven’t seen them lately, but I’m watching for them.
That is a good indicator!
Near my house a developer is building a 10o unit condo neighborhood. A few months ago the units were on sale for $195k. Now the for sale signs are gone, replaced by for lease. There is no way a rental payment in the present market can cover the in envestment cost
For Lease Navidad....
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