Housing Starts Suffer Worst Streak Since Jan 2009, Permits Plunge

Tyler Durden's picture

For the first time since Jan 09, Housing Starts dropped for the 3rd month in a row in May, drastically missing expectations (-5.5% vs +4.1% exp.) with both March and April revised notably lower. Building Permits also tumbled in May and massively missed expectations (-4.9% vs +1.7% exp.).

No one saw it coming...

Worst streak of performance for Housing Starts since Jan 2009...


Both Single- and Multi-Family Starts tumbled... This is the lowest level for overall housing starts since September 2016.


And looking forward the picture is bad with both single- and multi-family-unit permits plunging...


Probably a good time to hike rates some more!!

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Crypto-World-Order's picture

We were gonna MAGA, bitchez.

robertsgt40's picture

Time to go from McMansion to McMatchbox.

GUS100CORRINA's picture

America and the world have overproduced everything known to man. The CHANNELS are STUFFED to capacity for everything from iPHONES to CARS. DEMOGRAPHICS are NOT in our favor because BIRTH RATES are declining. 

Question: Who is going to purchase all of this STUFF with DECLINING BIRTHRATES???? 

Another fine example of KEYNESIAN ECONOMICS at work for the betterment of mankind!!!

2banana's picture

Millions of muslim "refugees" when not busy raping the locals and feeling offended?

I am Jobe's picture

You forgot waistlines as well.


Most Hispanics have large families, Whites no so much in Texas. Lot's of single Moms living on welfare in TX and think it is great and the kids turn out to be shits , must be the great religious beliefs they have in Texas

totenkopf88's picture

mexicans get to the US and stop breeding- 2-3 kids, tops- even they realize that it's as expensive as hell to raise kids in US

curbjob's picture

Paging Ms Yellen: 

The 3D house printer has run out of ink.

spastic_colon's picture

according to the NAR we need more supply to keep prices high and buyers buying lol

pitchforksanonymous's picture

Around me prior to the previous collapse, neighborhoods were going up everywhere!!! Building like crazy! That has been happening again over the last year or two, so I knew it was a only a matter of time before we got to the same place all over again....

Tick tock ladies and gentlemen. 

BorisTheBlade's picture

New construction is the most straightforward way to grow GDP. Even if it takes more than 1 dollar in additional debt to create one additional dollar in GDP. That's what was happening ever since 2008-2009. Coming to and end right about now.

BorisTheBlade's picture

And that with interest rates at historic lows. Imagine them grow and eating away everything with interest payments.

2banana's picture

The popping of the housing, stock, auto and student debt bubbles are going to be epic.

Hopefully, Trump doesn't pull an obama and bails out any or all of them.


Trump has to know - showing bankers, CEOs and union bosses in the perp walk will win him the 2020 election.

silverer's picture

I can't think of anything would have a more positive effect on stocks. Why? because this is a cue for the central banks to wheelbarrow more paper into the markets. Anybody for a bonfire?

Overleveraged_and_Impatient's picture

Oh whatever. Housing starts means absolutely nothing. If anything meant anything we wouldn't be at S&P 500 all time highs. The fact of the matter is that ECONOMIC DATA DOESN'T MATTER, and if anything, BAD news means more gains in stocks.

I don't care about unemployment, terrorism, earnings, nucler war, foreign policy, who is the President. Literally nothing matters except the $290+ Billion per month going into world assets each and every month.

I already know whats going to happen during trading today. We're going to see a light dip around the 10 AM hour, and by 1 PM we will be completely off the days lows, and quite possibly into the highs. I am going to purchase more 3x Leveraged Long S&P 500 as soon as the market opens. There is literally nothing stopping us from heading straight to S&P 500 3000 by year end.

IF IT WAS POSSIBLE FOR THE MARKETS TO CRASH THEY WOULD HAVE CRASHED BY NOW. CRASHES ARE NO LONGER POSSIBLE. The President's Working Group on Financial Markets literally matches the amount of total sellers of the day with newly created money, plus some. So it only goes up now.

Quadwitching, housing, yada yada. its all BULLSHIT.

I am buying and will continue to buy. I am having an excellent year which will only get better.

Crypto-World-Order's picture

I made 17,000 today. How did you fare today?

Overleveraged_and_Impatient's picture

Bro Bitcoin is down from $2,900. You are DOWN money. Stop lying.

Crypto-World-Order's picture

 I bought both dips of BTC and ETH yesterday, so that means Im up YUGE.

Spine of Ruprecht's picture

That is so Yahoo Finance of you......


17,000 basis points.... Meh......

Nunyadambizness's picture

"nucler war"??  Man, that sounds BAD.  

BTFD, baby!!

William Dorritt's picture

Planned Collapse and Consolidation.


No doubt the Globalists are attempting to crash what remains of the US economy in the next cycle of Planned Collapse and Consolidation.


Trump Team is attempting a soft landing for Americans where we get to keep some equity and put food on the table.

GodHelpAmerica's picture

Labor market up. Inventory down. Building down.

Makes ZERO sense. But such is life in the smoke and mirrors economy.

Doesn't take more than an average intellect to figure out that the narrative regarding the "robust labor market" is the main reason none of these data points make sense. Economy has probably been losing jobs the past three months.

William Dorritt's picture


The Economy has been losing jobs since NAFTA, China WTO, various Green Frauds,

and the Market is flooded with 100 million imports including millions of H1bs

to displace what is left of the Middle Class


25-40 million Free Loader illegals in the USA

Consuelo's picture



Lag time, dear GHA - LAG TIME...


Like the old saying - 'hiring managers are the Last to get the memo...'

Ricki13th's picture

Fuck this we are already in a recession. 

Crypto-World-Order's picture

Have been dude for like 17 years or more

jamesmmu's picture

Unbelieable! I expected it to miss, but not by that much. This is awful. Economy must be in freefall now. I can feel it.

yogibear's picture

Bullish! More and larger QEs on their way. Central banks can only print larger and larger amount and buy up assets from here on. It's the only thing they can do.

Nunyadambizness's picture

BULLSHIT!! Everything is HONKY DORY!  We're in the best recovery EVER, this is just fake news.  Everything is wonderful, haven't you been reading the Washington Post or the New York Times?  The only problem we have now is the President, aren't you paying attention??  DOW 250,000!!


GodHelpAmerica's picture

Increase property taxes + increase mortgage rates+ stagnant/declining real incomes

Inventory is "low" because many people are currently living in homes they cannot afford...

Anarchyteez's picture

In Seatthell they are living in parked RV's

Ricki13th's picture

Here we go another housing crisis is here 2017 is the new 2007. C&I loan data suggest we are weeks away from a recession by the Gov't standards. The assholes at the fed is getting their wealth transfer started.

bad dog 48's picture

I hope they transfer some of the wealth to me, but I think they only give it to their friends.

Ricki13th's picture

Here we go another housing crisis is here 2017 is the new 2007. C&I loan data suggest we are weeks away from a recession by the Gov't standards. The assholes at the fed is getting their wealth transfer started.

Spine of Ruprecht's picture

Those are volatile statistics, but if you compare to 2009...... Now 2009 was bad.

I don't think there's a terrible crisis in these numbers, per se.  My question is in the granularity we can't see - are "affodable" housing starts in decline?

It's Zero Hedge.  Rates of increase / decrease are often blasted with dire headlines, and you need to be intelligent enough to digest the useful financial information without getting too hung up in the rhetoric.

GodHelpAmerica's picture

Valid points. Check out America's debt load,
excluding mortgages. -$ 1 + trill credit card debt, $1.5+ trillion student loan debt, $ 1.15+ trillion auto loans.

Now who can afford a house?

Silver Savior's picture

I still can't. Probably never but if silver or crypto went to the moon then maybe. I probably would still not buy one. Too much hassle.

gatorengineer's picture

I have it on good authority that there was weather that month..  Pulling out of the Paris accords is to blame

Haitian Snackout's picture

The 2 happiest days in a boat owners life. 

William Dorritt's picture

Since the Middle Class is being Erased.....


The Suppliers to the Middle Class are being Erased too

In this case, the Home Builders.


Median Household is now taxed at 62%

hendrik1730's picture

Welcome to Belgium - there we are at 80%.

allamerican's picture

but tiny house sales up cross board, trailer sales rockin..


Silver Savior's picture

I see more people living in cars, vans and RVs. There never used to be so many. I see them on my way to work. Can't blame them. Things are real bad.

Russdiamon's picture

I remember what happened to the market last time housing data got worse. This guy I follow has been calling for a drop around this time for awhile. His track record for calling drops is great. You should really see what he has to say.

check this out

Bam_Man's picture

Gee, higher interest rates didn't help.

Who could have known?