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Cashing In On The Death Of The "American Dream": Rental Permits Soar Most Since 1990
If it wasn't clear to everyone that the "old normal" American Dream of buying and owning a house is now dead and buried, then today's just announced housing starts and permits data put the last nail in that particular coffin, because as we noted earlier while single-family housing starts dropped once again, this time to a level last seen in October, the real story was in housing permits. But not single-family permits: multi-family ones, aka rental buildings, just had the biggest monthly surge since June 2008, jumping 26% in one month, and a whopping 54% from a year ago!
Putting this move in context, while single-family starts languish at recessionary levels...
... the US "rental recovery" is in full force as multi-family permits just jumped to the highest level since 1990.
While we are confident this data will be promptly revised lower as today's "fat finger" is normalized with 2, 3 or more seasonal adjustments, the good news if any is that while rental prices have been soaring in recent years...

... there may finally be some respite for America's new rental generation. Just give it 2-2 years before all these permits become starts, then completions, and finally the housing units are rented out.
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Change you can believe in!
Following is a suckers game.
two hoots a newbie shill. Don't be confused.
At what point do these fails realize the economy will not support higher anything?
yep they are building a "projects" near here. time to move again. thanks owebomba.
Section 8 checkers, we like to call it.
they build decent houses and sell them first. later they move in all the maggots so decent folk have to move. what a scam.
Plan Bay Area in a nutshell. Spread the rot out amongst those who had the means to escape it, with tyrannical coertion from state and federal governments and courts to make sure no community escapes. Atop that, they banned open carry some few years ago atop essentially barring all but the few and special from concealed carrying. All firearms purchases are registered now. Woe unto the person who defends their self and property using deadly force out here, with the prosecutors and judges and juries we have. This is not the USA.
Multi-Family Units = Agenda 21
It is necessary to crash the single-family home dream in order to acquire the lands for multi-family units. The Agenda 21 plan is that by 2050 there will only be urban dwellers. The suburbs and county life will have ended.
Sheep are more easily controlled when they're kept in a fenced pasture.
The hard left hates suburb dwellers, suburbs, anything that enables suburbs(cars and roads and local governments control over local development, local policing, local schools), and private property(duh, except their own). They love central control and anything that limits the autonomy of the family, their number one enemy.
Millenials are moving out of their parents' houses. This is a good thing.
No!...It merely means that they are moving into multi-family units. Eventually, there will be no one to purchase the parents home, except to make room for more multi-family units. The "good thing" would be for the Millenials to care for the parents and keep the home. If Millenials did this in masse, the Agenda 21 bastards will not be able to acquire the lands for multi-family units. (A pipe dream? Yes! Realistic? No!)
Dafuq? I think you need to stop sniffing glue, amigo. There is absolutely nothing about what you said that makes any logical sense.
Dafuq?
I do not see the benefit in millenials moving out.
Your parents need help. Stay and help.
Also, I think smart families hand the house down generation after generation.
All millenials accomplish by moving out of their parents' houses is to work to buy duplicate stuff that their familly house already had in the first place.
Maybe they need to do that to learn their lesson, but why just USE the lesson, by staying home and using your capital to start a small business?
You want power? Capital is power. Keep your capital in your family and in your neighborhood.
And vote.
"Yes we can!"
"Yes, we can't!"
ZH is always on the cutting edge of financial news and thinking. We all now know the data from the "accepted authorities" is pure propaganda, at best. I see no value in veiwing or analyzing what we all know is garbage. Isn't it about time ZH continued as the leader in financial news reporting and start their own data set series? I think people will pay for the truth when all you can get for free is lies.
People and in particular the so-called markets are not guided by "Truth"; rather by "Propaganda". ZH publishes the propaganda reports and then injects the "Truth" into the missive.
How will US BLS seasonally adjust rents so they only keep falling? Or will they hedonically adjust rents for great views? Or for the sun rising everyday? After all official inflation has to a tenth or lower of real inflation:
Chapwood Index shows real inflation in US.
In 2014, it was 9.7% - 1212% of official US inflation (0.8%)
http://www.chapwoodindex.com/
Judging from the chart that's the biggest jump since Lehman.
Welcome to the debt serfdom plantation!
p.s. - rent goes up 10% next month.
Those college debt holders aren't lining up to buy houses and new cars and start a family on their new mediocre pay job? Who could have predicted something like this? I'm shocked, I tell you.
It's called affordable housing. The developers have to reserve a small percentage of the units for certain median income levels and then they get government backed bond financing at ridiculously low rates. Then the developer depreciates the buildings over 27.5 years. If you subsidize it you will get a lot more of it... and the developers are funneling back tons of cash to the politicians... all to make the world a better place.
Valerie Jarrett can explain how it works.
Seeing a lot of new extended care and senior assisted facilities popping up in my area. Would these qualify as rental units for permitting purposes?
Depends on the location, but generally not. "Minimal care" is associated with Hospital/health care and finds its way into "Civic" use. At least that's the way it is here!
I keep telling everyone if they keep this up everyone will have a mistress in an apartment soon.
Don't worry Hillary Bush will fix this problem.
Flood the US with more illegals to bankrupt welfare and have 1500 people compete for each minimum wage job.
You don't need to flood the country with more illegals when the average Latina is walking around with six kids. The low income birthrate will make sure there will be plenty of new mouths sucking on the government's tits.
You don't need to flood the country with more illegals when the average Latina is walking around with six kids. The low income birthrate will make sure there will be plenty of new mouths sucking on the government's tits.
Stealing your houses thru high property taxes and fraudulent foreclosures and then renting them back to you sure sounds like WAR to me. Yet 1 out of 100 I used to speak to (I no longer try except here at ZH) understand or even care. Amazing and sickening !!!!
Obama helped create more debt slaves while bailing out and boosting up the criminal banksters.
Yes.
And so did George W. Bush. And Bill Clinton. And George H.W. Bush. And Ronald Reagan.
It's not multi-family housing, It's government subsidized housing. There is a big difference. We haven't had apartments that a young middle class person who is jsut starting out could stand to live in since the Clintons ravaged multifamily dwellings "for the children".
They didn't call him the First Black President for nothing. The Congressional Black Caucus loved this type shit, and Clinton's aggressive enforcement of CRA, alliance with commie groups like ACORN to prosecute banks into doing bad loans.
I would like to think a good percentage of the increase is for people who realize owning a house sucks and haven't been brainwashed by the whole "you need to buy a house" crap society kicks out. I own one and if I could go back in time I would just rent. It's cheaper.
Some reasons to own a home:
You can share it with other family members, saving capital.
You can have a small business (including usually with a truck and tools and workshop), accumulating capital.
A house forces you into responsibility, because whatever breaks, no matter why, you have to fix it.
A house locates you in a neighborhood of other people also doing these things. You NEED a support group, to get power, or protect yourself from power. You CANNOT survive alone.
And... more homeowners than apartment-complex renters understand that, and therefore your support group will be smarter and more determined.
IMHO, owning a home is OFTEN but not always financially good.
And buying an EXPENSIVE house, in the hopes of reselling it one day for a profit, is usually not.
(Of course, you MAY know where the Clubmembers are going to buy in the future. But that would be like knowing what stocks the Clubmembers are going to buy in the future. MAYBE you are smart enough to figure that out, or MAYBE you are a Clubmember and other Clubmembers will drop hints for you. But otherwise, you are gambling, and when you're gambling, The House always finds ways to stack the game against you.)
Drive around your nearest ghetto and marvel at the new "Low Income" housing that is being built.
#BLACKHOMESMATTER
The builders get to build so they can support their insane stock prices. The ghettofiers get brand new accommodations that would be out of reach for any middle class person in almost any city worth living in.
It's true. Where I live is a stone's throw from da "hood". Notice the nicely paved roads? The grocery stores built into the lobbies? The new playgrounds with sprinklers, rubber mats and freshly painted park benches?
The harder I work the harder I get fucked. So dudes of working age can stand around all day on the corner in da hood with their hands in their pockets, glaring balefully at everyone.
I agree entirely that the 'economy' is a mess, and that the relentless propaganda suggesting recovery is farcical...However percentages of these permits that will result in rentals can't be accurately determined merely by the designated multi-family catagorization.
Agenda 21 related or not, it isn't unusual for multi-family housing to be built then sold, becoming owner occupied. At least some of this housing is very likely within 'master planned communities'.
Keep your eye on the subdivsion notifications in the paper. Multifamily that isn't "condo'd" up front has to go through this process (or fee simple subdivision) for the abitity so sell seperately.
Caveat emptor. A structure built to serve as rental apartments might not be built to last hundreds of years. As the structure ages, maintenance costs may increase.
Let them make bricks without straw.
I never understood that story. Would the owner of a building want it built with inferior bricks? What's the deal?
Section 8.
4 to 7 people in every one bedroom apartment in my complex. people are always pissing in the parking lot because the bathroom is occupied. I dont know if its possible for things to get worse but I have a feeling they will.
You will know things are much worse when they begin to take a shit in the parking lot because they can't afford to flush.
You can see the results of the po-po. Don't let your place fall apart.
CHAMBER POTS. Throughout most of history, people had CHAMBER POTS. These days we have the modern technology of plastic, from which a variety of manufacturers have made available a veritable cornucopia of wonderful containers - with large diameter screw-on lids - which keep liquids within from stinking up the bedroom as bad as chamber pots used to. Simply use container until it gets "pretty full" and then carry it to the bathroom, empty it, and flush. Saves water too. (My doctor ALWAYS makes me fill a container.)
Maybe you aren't the only one in your apartment complex who is tired of the parking lot activity.
This is being caused by low interest rates for savers. As boomers with money look for yield, one of the few places left is housing that can be rented out. As single family homes are now in a bubble, the safest (looking) place is multi-family units -- even if on a small scale. I am seeing a bunch of clustered town homes, along with 4 or 5 unit apartments going up.
Buy rentals. They'll be trapped for their duration.
How can I say it any better?
The depreciation in rental property values due to the tenants having no vested interest in the property seem to be largely missing from the equation. Many tenants seem to have a "don't give a shit" attitude WRT their residence. Their unsanitary lifestyles lead to vermin infestations and damages from black mold, among others. There are other consequences as well, including intentional damage/destruction of the property in the event of owner-tenant disputes, often resulting from failure to pay rents on time or eviction efforts/actions.
We are all renters... Stop making Property Tax, Mortgage or Rent payment and see what happens..
When your country starts turning into Mexico buy some property and become a slumlord. The chart agrees.
I mentioned a few times PM's and low income rental properties were the hard assets I preffered most. Now slim pickings though in my area for now but I wager that there will be a new but smaller wave of foreclosures in the next 24 months.
The property rental business should be great as we go through another lost decade. Then I'll sell them and buy a nice affordable house on a lake up north as the boomers have nearly finished migrating south and begin croaking. That is if we avoid a world war.