Housing Starts Post Biggest Drop Since August 2011 As Permits Rise

Tyler Durden's picture

We just got another indication of how US housing has "bottomed"... if only in terms of promises and strong words. While permits, or promises that at some point in the indefinite future, a house will be built, soared from 723K to an annualized rate of 780K, the highest since September 2008, on expectations of a 730K print, actual holes dug, or Starts plunged from a revised 744K to 708K, the biggest miss of expectations of a modest improvement from the pre-revision number since April 2011, and the biggest sequential drop since August 2011. And while recently all the starts strength was in multi-family units as America prepares to become a renter society, in May it was actually the 1-unit houses that saw an increase from 500K to 516K units, as multi-family tumbled from 236K to 179K. So much for the REO-To-Rent plan? Finally, looking at actual completions, the number tumbled by 10.3% from an annual rate of 667K to 598K in May.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
MFL8240's picture

Recovery Summer!

Manthong's picture

A big boom coming in the need to dig holes.

GeezerGeek's picture

Come November I expect many holes will be dug and filled with the corpses of political careers.

Caviar Emptor's picture

I built a lean-to out of twigs. That counts!

Taterboy's picture

Lower housing starts? That's just racist,you know.

Bicycle Repairman's picture

Housin' ain't comin' back, yo!

icanhasbailout's picture

Wait 'til you get a load of my new single, "Fat Bottomed Housing"

johnnynaps's picture

Big whoop! The same soon-to-be political corpses you talk of will still get paid and receive benefits for driving the rest of us into serfdom.

HelluvaEngineer's picture

Don't distract me with hard numbers.  The only thing I care about is sentiment!

CClarity's picture

And there we have the "weather phenomena".  With all that good weather over the quarter . . . why weren't they digging holes?  Too busy shopping?  Once again, it just doesn't really add up.  

Or maybe it's that pesky offered credit forward to fund the consumption.  Working for autos and for a long time worked for mattresses . . . but I haven't seen anyone offering 0% down and 0% interest on lots lately.  Same on new construction loans.  There - fixed it.  Let the next lending frenzy begin.  sarc/

Caviar Emptor's picture

I agree, no hard data necessary. And beyond even sentiment, what's more important is wizardry and predicting the future based on gopher entrails

eurusdog's picture

Heathens...bones in bowls, bow before the one true printer, lord, god Ben!

RickyBobby's picture

In Texas there is an enormous skilled labor shortage and we can't build without labor. I own a subcontracting biz. I could triple my work if I could find the labor.

I Got Worms's picture

What area of skilled labor is most needed? I'm a burned out lawyer trying to talk my wife into letting me chuck my law career and go to welding school in Houston. Shockingly, not having much luck with my argument. :-\

riley martini's picture

 Welding is hell on the health but pays well after a couple years of training . Tex is having trouble finding skilled labor beceuse the pay is probably about the same as Mexico cost adjusted. I know alot of subs who never seem to get the pay retention effect.

otto skorzeny's picture

thank the Bernank and $100 a barrel oil-remember Texas in the 80s-a bigger shithole than it is now

marcus popus's picture

I have a contracting business in the mid east. Can i send you some illegals from here, they're skilled.  Most illegals have retired on US social security and worker comp awards.

InsurgoCasca's picture

Bullish. Simply bullish.

caimen garou's picture

now I know how to play this market, bad news buy equities,good news sell equities, what a scam!

scatterbrains's picture

My theory is you have to, Like Lehman, be bullish on the collapse of the American economy. The faster shit implodes the higher stocks like LULU and AAPL will rise on the fed printing treadmill. Come on Benny you can do it man, just push the button already.




fonzannoon's picture

Seeing as I base all my investment decisions on whether or not they will dig a hole in the ground at some point I have to say this is absolutely perplexing.

otto skorzeny's picture

Kohl's dug a hole in the ground here this spring- saw where the economy was headed and just up and quit building-the equipment and mounds of dirt are just sitting there-BULLISH. not to mention 3 more small businesses in strip malls have closed in the last month

TrainWreck1's picture

Smart planning by Kohl's. Getting ready for that consumer rush that's just itchin to happen, any moment now.

We should be digging holes everywhere.

To be honest, I'm giddier than Cramer right now, especially since Europe is fixed and all better.


HelluvaEngineer's picture

I used to shop at Kohl's, until their clothing turned paper thin and the price doubled.  20% off?  No thanks.

JohnKozac's picture

My friend tells me even his Ebay sales are way down....brand new stuff reduced 90% and still don't sell.....

"Bleak" is the New Normal.

cossack55's picture

I want to invest in holes. Any recommendations on funeral parlors.

Saro's picture

No, but sugar-daddy dating sites, on the other hand . . .

TrainWreck1's picture

Odd, all the ads I see are 'sexy septuagenarians'

johnnynaps's picture

There's a lucrative demographic with very little competition where I live. I should have my Funeral Directors license in about a year....wanna invest?!

otto skorzeny's picture

The only thing getting built around here are the Del Webb shitboxes for the boomers. Basically 4 plastic wrapped walls/2000 sq ft  for $350K and an $8000 property tax bill(so the local podunk cops can make 80K a year to enforce water sprinkler rules)

Conman's picture

Sounds like you are around Vegas. Del Webb still building shit out there with the shitload of inventory still unsold?

otto skorzeny's picture

SW Chi-town burbs- because IL is the first place the "smart" retirees  think of

HelluvaEngineer's picture

That's a better deal than the Boomers deserve, IMO.

Metalredneck's picture



My boss dug a hole two years ago to build a new shop.  Still a hole.

Jason T's picture

construction sector has been losing jobs for 5 months straight.. 




drchris's picture

I almost jumped on the multi-family bandwagon.  I found a great short sale that would make good money if fully rented, but then I noticed all the "For Rent" signs in the neighborhood.  I don't know where people are living.

LoneStarHog's picture

Hint! ... Have you noticed that gasoline demand is way down because vehicles (homes) are not being driven ... and ... large appliance boxes are not being recycled ... and ... parents have been cleaning out basements?

LoneStarHog's picture

Yup! I have to wonder how many homeless families will be found the next time Obozo gets his Presidential Colonoscopy? Might also finally find Jimmy Hoffa.

roadhazard's picture

If they aren't at there parents they are living ten to a trailer illegal Mexcan style.


God bless Amerika.

Bicycle Repairman's picture

Why pay rent that is equal to a mortgage payment?  Mom and dad have plenty of room in the McMansion.  Use the mother-in-law apartment they never should have built.  There's no stigma in living with M&P anymore, since everyone is doing it.  M&P need help paying the absurd property taxes.

LoneStarHog's picture

So...does this mean that Mr & Mrs Obozo will have to rent a place next January?

GeezerGeek's picture

Well, they do already have that place in Chicago, made nicer by the land deal they made with their friend Mr. Rezko. I wonder if Michelle can put up with Chicago weather after having visited all those nice places around the world.

LoneStarHog's picture

Why is it that every time I post about Obozo he gives me a negative? I guess moving from Chicago to WaShitOn destroyed his sense of humor. Well, not completely since he appointed Hillary as Secretary of State.

orangedrinkandchips's picture

Seriously, Real Estate from what I gather is going bangbusters AGAIN. In Phoenix, you can get your very own patch of dry hot sand for between 100k-300k. That level is moving so fast with multiple bids. Anything above that tends to stay on the market I am told by agents.


I see it here in Chicago too...people thinking it's going back to unsustainable levels.....


HIGHBALL....I think that is the term....Let's say I want to sell you a turd for 10 bucks...you say....that is shit! I know....so I will give it to you for.....wiat for it.....6 bucks!!! 40% off!!!! THAT IS A SORE DICK....YOU CANT BEAT IT!


But, you know all along it's not worht ANYTHING....BUT the psychological numbers make you believe it's a deal!


This is a bump up on the never ending decline....hope floats....


real estate sucks ballls

otto skorzeny's picture

in Chicago? wait til the property taxes statrt jumping 20% a year to plug the Cook County pension gap

orangedrinkandchips's picture

Dear Otto......oh...do NOT get me started.

Real Estate taxes are one thing that are outrageous and not even mentioning tolls or parking. Illinois is the worst of the 50. No doubt about it. On all levels.

Thank God Scott Walker won up north....I mean, cmon....we the tax suckers are paying for their "pension"...going to fat, surly and lazy pieces of shit???


Pensions are great, if you got em. And they are great IF YOU FUND YOUR OWN PENSION akin to 401k. But to have these Cook Cunty employees make 100k pension for DOING JACK SHIT.


So, let me get this straight....we the tax suckers(total fucking losers of Illionis) FUND the pensions that go to these "(un)civil servants"...and if they die it goes to their spouse. We fund it 100%.

So far so good...now...we get these overpaid PM who blow the fund to pieces with a bazooka given to them by Satan himself, Ben Berkanke. So, with negative rates (not even real rates!!!) you cant blame them too much as interest is a thing of the past.


So, the PM gets paid. The pensions get paid. We pick up the pieces. SOCIALISM AT ITS BEST!




I hate playing the fool.....but atelast I have company!

Taterboy's picture

Not a problem. Come Jan. 21 they'll have themselves an experienced community orgasmizer to fix that pension thingamajig.

Temporalist's picture

Do you work for the 24 hour shopping channel?  I really want a set of 100 knives that can never be sharpened and have no use for anything.  How much?

sockratte's picture

how to feed a bubble with a leak...