This page has been archived and commenting is disabled.
Housing Starts Miss After Northeast Tumbles, Permits Beat On Strong Rental Demand
While today's economic data is likely too late to influence the Fed's decision which is now due in just over 5 hours, moments ago the latest housing starts and permits data painted another mixed picture, with Starts declining to a three month low of 1,126K, missing expectations of 1160K, and below last month's downward revised 1161K. The miss was a result of housing starts in the Northeast tumbling by 34% to 108K, the lowest prince since March now that the tax-driven surge, which we discussed previously expired in July, is over.
In August, while single-family starts dropped, so did multi-family or rental units. Notably, while housing starts are still just barely above half the pre-crisis peak, rentals continue to rise ever higher as more and more Americans have no choice but to downgrade their American dream to renting for life.
But while starts data was slightly weaker than expected, permits came in a fraction hotter, at 1170K, up from a revised 1130K, and above the 1159K expected. Like with starts, Northeast saw a decline but far less pronounced at just -4.4%, while all other regions saw a modest pick up. And just like with starts, multi-family permits continue to rise well above single family, up 21.5% vs 8.7% respectively.
So if the Fed's intention with 7 years of ZIRP was to force the middle class out of owning a house and into renting, it has succeeded.
»
- 7816 reads
- Printer-friendly version
- Send to friend
- advertisements -
Strong Rental Demand
That screams economic growth......who needs a damn house......when you can just rent.
Especially if the government is paying your rent for you.
So people are pulling permits in a slowing housing market? Bullshit! Maybe they are building State Housing for the poor, which seems to be the only segment of the US that is growing. The rental market in the southwest is saturated and there is no land in metro and larger city suburbs!
Will government benefits pay your rent for you? Yes.
Will government benefits pay your mortgage for you? No.
Get it?
Its called backlog
Caryle just raise another 4b re: green flag mid "cycle"
Permits are meaningless and I'm seeing more and more inventory not moving at all. $15 dollars an hour x $250,000 ( average home cost ) now there is a sound investment lol
section 8, coming soon to a neighborhood near you. scratch that, the scumbags will be moving in next door and will ruin your property values and run you out of your own fucking house. then your house will be section 8 too, which is what owebomba wants.
In various middle-middle income communities throughout Western Pennsylvania it is known that you do not purchase a home anywhere near the bus or rail line. Those housing plans are where the Section 8 sales occur being that the folks who will become the new 8 tenants most generally are not bringing their own "ride" with them. They be needin the bus and shit to get themselves around. Funny, though, it always seems that eventually a run down car with expired plates and inspections shows up parked on the street in front of someone else's home. Then, it just remains there unmoved forever.
Our former house sat on the golf course in a great neighborhood. Some investment group bought it, divided it up and is now renting it out to several Section 8'ers. House values have plunged there now. Somehow thugs sitting on the porch drinking beer and smoking XYZ all night turns non-diverse peeples off.
I do feel sorry for some of my neighbors but we had no control over who bought it. But it is just one more example of the decline of a once great nation, eaten away by parasites bit by bit.
DART in Dallas is a huge success. It brought the ghettoe all the way up form south Dallas to north and no where near the DART stops are safe anymore. I was mugged by two of Obama's sons near one of those stops but luckily they didn't shoot me. Just took everything and calmly walked off knowing no one will stop them.
It's 21st Century America!
I have heard (informed) people say over and over again that ZIRP is good for the housing market. One of about 1000 things that does not occur to them is that home ownership is at its lowest level in 50 years. Once again, it's for the 1% who were able to refinance. The typical middle/working class family are renters or those with homes are in the process of trying to sell the homes they have due to stifling property taxes.
O/T btw: American Express received $3.8 billion in TARP and other FED programs after being allowed to become a bank holding company in 2008. So they get 0-.025% fed funds rate. I have a Paypal credit card through American Express. I have an extremely high credit rating. American Express is charging 19.99% on the PayPal cc and WILL NOT adjust it. Fortunately I have a very, very low balance but other holders are getting f*cked up the ass while American Express gets an easy 19+% profit.
But the FED does not serve the financial industry and Wall Street................................
Here in upstate NY chemtrail flyover country, the small villages in Wayne county, NY are, one by one, dissolving into town government, eliminating needless dot.gov overlapping and jobs.
The villages, like Lyons, Newark, Sodus, are becoming welfare shit-holes and property tax paying landlords aren't paying up for bloated school district pensions. This is mostly farm country. The villages are an eyesore, but at least they keep the dark-skinned, welfare-seeking minorities in one place. I'd like to see them shipped back to Rochester and Syracuse, where they routinely shoot each other.
How this relates to home ownership and renting is just as no debt put it above. Government pays your rent, but not your mortgage. The big trend here is getting a permit for a pole barn, garage or shed, parking your camper next to it, digging a hole for a septic and saying a loud "FUCK YOU" to the property taxes and building codes.
That's my plan next summer. Already have the camper, and for now, I bury my shit because in NY state it's actually illegal to build an outhouse. Someday, I think gov. Cum-oh will make ass-wiping illegal.
Rent already is and mortgage will be just bad memories past for me as of May 2016. The system sucks balls. Get out if you can.
Well not to be an asshole but you NYer's get what you voted for.
upstate don't vote for them...it is a liberal democrats of NYC!
In Colorado Springs you can rent high end cheaper than owning. I consider the money I have save monthly and on maintainence to be equity. I mainly rent because I don't plan on staying soo I don't wish to be trapped in the event people wake up and quit paying these prices!
Housing, land will SKYROCKET in the near future, why? Because the population of the USSA will SKYROCKET also.
Immigrant Population Hits Record 42.1 Million
OBAMA TO ADMIT 100,000 REFUGEES INTO USA
CENSUS: Foreign-Born Incomes Increase, Native-Born Incomes Decline
Overall income down 6.5% since start of recession
What "right-wing nuts" warned us about was true about TPP and TiSA:
FOIA request confirms presence of immigration chapter in Obamatrade
Now I'm confused; should I learn Spanish or Arabic? The Bible or Koran?
I am seeing price reductions in the DC area finally in the last month after 6 months of solid gains. Still a long way to go though. I see SFH for sale in Fairfax County now for low to mid 400's now which was unheard of 6 months ago. The houses are small and need work but at least they are SFH. Hoping to see another 20% decline in the next 3-6 months though before I buy when all this financial calamity hits us.
Property taxes are through the roof. I've noticed that they tend to do this during bubbles then snap back in crashes. Also I've noticed new public schools being built on every corner in place of perfectly good school buildings. They either build a completely new building 2 times as large as the last one and it looks like a college campus for an elementary school or they add on to the old one and double the size.
The sheeple think public schools are free but fail to realize they will be paying for them through property taxes or increased rents from their landlord. Bond companies don't give a sht, all they care about are the fees they get from writing the bond, they are pitching the cheap money idea, courtesy of the fed. Another consequence of the cheap fed money. When you pay 10 to 20k property tax each year, you have, how do you say, a little less for discretionary spending. The question is, with the massive build up of debt in local communities a la fed zirp money, how are these communities going to handle a decline in available tax revenue, specifically oil business dependent communities.
on the plus side if you are invested in Blackstone you are making a killing extorting rent from lowincome people!
Rent control is going to be a bitch for landlords when it takes hold.