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Building Permits Plunge After NYC Property Tax Break Expires, Housing Starts Stable
After 3 months of exploding building permits - driven exclusively by the Northeast region as a result of an expiring property tax break in NYC, reality bit in July as permits plunged 16.3% to the lowest since March (biggest drop since June 2008), down to 1.119MM from 1.337M last month, and far below the 1.228M expected, confirming once again that economists did not even have a clue about the driver behind the recent surge, even though as we warned just before the number was announced...
Northeast housing permits set to tumble
— zerohedge (@zerohedge) August 18, 2015
Sure enough that's precisely what happened.
This was also the biggest miss on record for permits.
Housing Starts rose less than expected but thanks to a dramatic upward revision are stable at around 1.2 million units SAAR (driven by a rise in single-family units trumping multi-family units), although in absolute terms at 1.206MM, the number was fractionally better than the expected.
The 3 month surge into the NYC property tax break expiration has ended:
The good news, and the reason why the USD suddenly found a modest bid, is that Single-family starts once again picked back up.
Looks like we are going to need some more tax break expirations to keep the housing recovery dream alive.
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Just wait until Trump kicks out half the city.
Yeah, the wrong half.
no one is getting kicked out....this is a multi step negotiaton. see the bigger picture.
The Supreme Court will devise a ruling that will keep them here and the ship on course.
You mean keep the Titanic on course?
And here I was under the impression the population increases were due to a rise in inmate population at New Yorks prisons....but what do i know.
most of these new units are to house white collar criminals pre-arrest.
Taxes in NYC are so high, and they dont even make improvements to the highway system, its terrible.
They keep wasting money on stupid parks, while lowering the speed limit which only makes the traffic even more terrible.
Its a miracle anything gets done in NY...
For the money New Yorkers pay to the city we should have 20 tunnels and a 2nd deck to the BQE by now.
Agreed. Your word miracle is a good one to describe NYC reality. There are also plenty of "homes" available that are sitting empty. Entire buildings that can renovated, but because NYC city codes are so Byzantine, and the expenses to do so are so high, nobody even wants to try. So piles of buildings sit empty. Rather than renovate, it's easier to build to suit the rich that can afford it with ultra expensive features, and the resulting building has better resale. Nothing can be built that makes sense from an investor's standpoint that caters to the average person in NY. The city and the system is totally screwed up.
New York = Liberal cesspool, they deserve every part of the decaying infrastructure.
...plus a whole bunch of new mortgage and HUD regs kicked in August 1 so the builders are adjusting accordingly permits wise.
NYC is another cesspool now again. So who cares. As long as they don't move near me.
Fuck NYC. Whocares?
The CNBC WEBsite boasts:
US housing starts approach eight-year high in July
Housing starts rose in July as builders ramped up construction of single-family homes, another sign the economy is firing on almost all cylinders.
Question: How many cylinders does the USA economy have?
NYC is untouchable just spend a day there to see. I was there yesterday and went to a nice little restaurant in Tribecca. It was a Monday in August and the place was pretty filled up with the average glass of wine $15 and entrees $40. 1 bedroom apartments anywhere not on a shitty street are $3k minimum. People spending hand over fist. I don't know where all these folks are getting the money from.
$3k minimum? Maybe for a crackhouse walk-up. 1BRs are $4000-4500 in any building that's in good condition and/or renovated within the last decade or so.
Grandma Yellen