Housing Starts Drop Most In 4 Months; Single-Family Starts Collapse In The Midwest

Tyler Durden's picture

Another mixed picture from housing data following the roll-over in homebuilder sentiment last week. Housing Starts dropped 6.8% MoM in March to 1.215mm SAAR - the lowest since Nov 2016.

The biggest driver was a 16% plunge in starts in The West and Midwest (35% plunge in Midwest single-family starts).

 

Starts decline in both single- and multi-family-units...

 

Permits beat expectations (rising 3.6% MoM) led by an 18.3% sequential surge in multi-family units.

 

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
I am Jobe's picture

No Jobs

No good paying jobs

Waiting for parents to  help children out

End of the dream? Americans are living in an exceptional world 

FrozenGoodz's picture

Renting makes cents sub 35 y/o

Son of Loki's picture

Stores closing at a record pace as the middle class consumer goes from broke to broker

The battered American retail industry took a few more lumps this week, with stores at both ends of the price spectrum preparing to close their doors.

The rapid descent of so many retailers has left shopping malls with hundreds of slots to fill, and the pain could be just beginning. More than 10 percent of U.S. retail space, or nearly 1 billion square feet, may need to be closed,

The blight also is taking a toll on jobs. According to Labor Department figures released on Friday, retailers cut around 30,000 positions in March alone. That was about the same total as in February and marked the worst two-month showing since 2009.

Extrapolating out to the full year, there could be 8,640 store closings in 2017, Buss said. That would be higher than the 2008 peak of about 6,200.

http://www.msn.com/en-us/money/companies/stores-closing-at-a-record-pace...

JRobby's picture

Yup

Retail crashing

Auto crashing

Restaraunts crashing

Amazing really when Oblivio left everything in such great shape and then fled to Fiji to avoid prosecution?

Nunyadambizness's picture

Wait, What???  Everything is HONKY DORY, didn't you know that??  Come on, the Dow is high (as a kite), so everything is wonderful, right?  You don't think the gubmint has been lying to us, do you?  Naaaaaahhhh...  It's a gumdrops butterflies and Unicorns here in the good ol' USA.

 

Just waiting for the shoe to drop....

knukles's picture

It's Trump's fault.
    -G Soros, et al

Handful of Dust's picture

It's all part of Soweeto's "robust recovery" ... aka, "shit pie" he left for Trump.

CRM114's picture

New auto sales rocketing up in Canada. 68% light trucks.

https://canadianautodealer.ca/2017/04/strong-march-auto-sales-continue-g...

I'm told the quality pick up truck trade-ins are on a truck to the US within 36 hours - the exchange rate makes this profitable. This is certainly the case in Ontario. There are no decent used pick ups to be had there.

However, this then depresses the market in the US for domestic used cars.

For smaller provinces in the Maritimes, the trade-in volume plus the extra shipping distance means it is not worthwhile, so decent used trucks are plentiful.

 

Common_Cents22's picture

my local mall in MN has many vacant spots.     I'm wondering when malls will be converted into multifamily residences, or probably government offices.    MN govt has taken over several buildings, including car dealerships and built state of the art offices, transportation depots, 

I think i'll get a govt job.   

Pigeon's picture

If you're a white male, you can forget about it.

Justin Case's picture

Things will get better when all unions are abolished. That way everyone will have low paying jobs. The dream is turning to a nightmare.

JRobby's picture

No one in flyover lands can qualify for a mortgage from the handful of "banks" still in residential mtg.

"We welcome you to cracker box palace, We've been expecting you"

JRobby's picture

Parent's whealth will be sucked dry by disfunctional, insane costs healthcare system and the conspiracy to jack end of life hospital stay costs to the outer reaches of the galaxy (all approved of course by the health insurance cartel)

They cover all bases. the plan is to totally crush and enslave. But they could never get the guns away from the people? Tactical error? Or part of the plot?

Handful of Dust's picture

Non productive shitlings are also sucking their parents dry.

I know literally dozens of Millennials who have no job and simply suck up some living money from their hard-wrking parents every month. Many have moved back in with Mom and Dad and dusck directly off the tit that raised them.

It's interesting to hear them complain, "there are no jobs" when I saw many signs in front of stores and small businesses this weekend advertizing for help, "Now Hiring" signs. The problem these yutes encounter is you have to actually show up on time and WORK to get paid.

Ricki13th's picture

The euphoria is slowly but surely dying off. 

CRM114's picture

Building codes and bylaws are ridiculous.

Government will have to allow more self-build and tiny houses if it wants people to have disposible income to spend.

Fundamentally, the amount of regulation is deeply inefficient and is killing the economy.

JRobby's picture

By design

When a building permit and water tap costs $40k...............................

CRM114's picture

I just bought a waterfront lot for C$40k, well already drilled. Building permit is C$500. Mind you, Building permit was C$150 7 years ago. Same ridiculous % inflation of fees for pointless inspections, but at least it's starting from a much lower base.

JRobby's picture

Great for you. Keep the offshore money out of your local RE market (if you can)

What, uhhh, body of water if you don't mind me asking?

CRM114's picture

Gulf of St Lawrence - stuff is still cheap in the Maritimes

Houses Depreciate's picture

Building permits are $500, max.

markitect's picture

Shit, I did a new house in a Chicago suburb and the permit was $14,000.  Its out of control.

Houses Depreciate's picture

Ehhh likely not. Not the bare permit.

Common_Cents22's picture

It took me 3 MONTHS and $10,000 to TEAR DOWN an old crappy house.   Local city were such aholes.   It had asbestos floor tiles which are landfillable (non friable) STATED in the code as fine but the city wanted me to do some expensive abatement anyway.   fuckwads, i hired an expert for $2 grand just to fight that.

50 pages of documentation on disposition of every last piece of any material.  for what?   nobody will read it.

There IS NO rule of law.

when my parents sold their home, the state DNR said a DRAINAGE "pond" made at time of construction, was now a natural pond and they must restore it, plant aquatic vegetation or pay fines of $3,000

govt is INSANE!!!

CRM114's picture

UK - my brother was willed 3 acres with an old 2 bed house & big garage. He sought a permit to pull it down and build a 3 bed house with the same footprint - and fought the denial for 5 years / $8,000 and lost. Six months after selling it, the council granted a permit for a developer to build 11 3 bed rabbit hutches on the same plot.

Handful of Dust's picture

Buying an old place for the lot and tearing down that 1956 house in order to build a newer bigger place is very very expensive near most cities. My friend moved to Houston and bought an old house I think in Memorial for $800k and is tearing it down to build a new big house. I don't now how much the tear down will cost or how much the new one will cost but I hope she has plenty of $$$$ for her dream house.

RSDallas's picture

All this is, is the slow sales that were experienced in January and February.   Sales are exploding in Texas.

Common_Cents22's picture

multi-family units will SURGE.   because they will reclassify all residential as multi-family when there are 12 family members living in one single family home to survive.

Common_Cents22's picture

The huge RE crash 10 yrs ago?      NOT SO IN DC.    DC was the ONLY market that grew.

That, there, is our entire problem summed up.

Ban KKiller's picture

Find abandonded foreclosed home. Change locks and move in. File motion for void judgment. Or create an assignment of mortgage (just like the banks!!!!) and assign deed of trust or mortage to your LLC or better, your cousin's LLC. Post no trespassing signs and live rent free. 

Create note and mortgage to company X from alleged bank who foreclosed. Use notary stamp made at office supply store. 

"Sell" property two more times to two other companies using the land record system in your county. 

Once property has changed hands several times then really sell it! Or just live there. 

Titles are SO screwed up these days. Need proof? Title company WILL NOT cover you against former owner showing up to claim false, fraudulent foreclosure. It is one of the exceptions.....yes you bought title insurance but it does not cover fraudulent foreclosures...get it?

corporatewhore's picture

That assumes a judge can understand 500 years of valid real estate law.

Most are bought and paid for by the banks.  Invalid foreclosure claim=deer in headlight glare from judge.

Good luck.

Houses Depreciate's picture

With record levels of excess, empty housing, why build more?