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Housing Starts Surge Entirely Due To Year End Channel-Stuffed Multi-Family Units

Tyler Durden's picture




 

Once again the US Department of Truth succeeds in fooling the algos: today's November Housing Starts number was a blockbuster: at 685K annualized units, it came higher than the highest estimate (range was 600K to 655K), and certainly higher than the average estimate of 635K. It was obviously higher than the downward revised previous number of 627K. All great: housing soaring, employment must be back. Right? Wrong. One peek under the covers shows where all the "growth" comes from - the entirety of the surge was due to the absolutely hollow 5+ multi-family units which jumped by a whopping 25% sequentially, and which as everyone in the industry knows are nothing but inventory padding by homebuilders who "build just to build." Unfortunately, as the all important 1 Unit structure trendline shows, there is absolutely no improvement in this critical series. But hey - it fooled the robots. And now it will take at least 12-24 hours before vacuum tubes process the reality of this latest spin. By then, however, we may well have had our Christmas rally.

 

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Tue, 12/20/2011 - 09:57 | 1997282 JPM Hater001
JPM Hater001's picture

Liquidation of the malinvestment will result in house prices near 1981 prices.  Remember that huge mansion you wanted.  It's going on sale very soon.

Hope you can afford the property taxes.

Tue, 12/20/2011 - 10:06 | 1997313 Hansel
Hansel's picture

I'll believe it when I see it.  The banks will let houses rot before they take the loss and let peasants live in them.

Tue, 12/20/2011 - 10:17 | 1997338 TruthInSunshine
TruthInSunshine's picture

This is my domain.

Due to the fact that few people can qualify for now stricter and conventional mortgages, since they lost their jobs or filed for bankruptcy or have delinquent/non-payments on record (poor FICO; really poor) or had a medical emergency with bills they couldn't pay (since they were uninsured or underinsured) - they have to rent.

This is causing a boom in construction of apartments, which had been an aging stock while the housing boom was happening.

Month to month, bitchez, with no ownership interest (this is probably best, in all seriousness, as it is part of the deleveraging process).

The SWHTF this year and in 2013 when the REOs that have been kept off the market come rushing back onto the market, along with the additional foreclosures now happening and that will continue to take place, now that many of the issues (economic from the banks' standpoint, legal (MERS title issues), Fannie/Freddie trying to avoid listing REOs). This is when we'll see additional drops in nationalized housing values that will be greater than at any time since 2009, and spawn a further deleveraging pressure, as deeply wounded banks rush to raise capital, as they'll no longer have the luxury of waiting for the housing market fundamentals (mainly in terms of prices/values) to improve.

Tue, 12/20/2011 - 10:34 | 1997391 JPM Hater001
JPM Hater001's picture

1981 was a fairly random date but the idea is the same and you hit on it.  I said in 2009 that the real tragedy here is that everyone buying more house than they could afford but still with a decent credit score will now have neither.  And the same apartment they used to live in wont take them because their credit score will have been crashed due to foreclosure.

So the people the government tried to help are even more screwed now.

Banks will own a lot of property after the reset.  That concerns me even more.

Tue, 12/20/2011 - 10:57 | 1997473 MachoMan
MachoMan's picture

The presentish banks won't own shit...  they'll be thrown to the wolves, like the FED...  eventually.  The benefactors will be the private individuals (club members) who are directly responsible for a significant amount of this mess (and took their bonuses during the boom).  The deleveraging process will play into their hands via the utilization of the wealth gap.  Further, their institutions will be the successor banks that buy up the distressed assets (and claims on real property) for pennies on the dollar when the TBTF are systematically liquidated/nationalized.

The entities themselves are just a layer of liability protection for private actors...  just a simple vehicle...  ultimately, they're meant to be jettisoned when it means the rocket (actors) can boost into orbit.

Tue, 12/20/2011 - 11:24 | 1997561 redpill
redpill's picture

Haven't dug into the release yet, but the figures sound suspicious. I don't know that I'd classify a jump multis as "channel stuffing" as multi family developers don't necessarily benefit from that.

What is important to remember, however, is that these are seasonally adjusted annual rates. So in other words they are saying it was a better month, but only as "Novembers" go. Home construction is extremely seasonal, and Nov-Jan is always very slow. So even if this is "good for a November" the low volume and high percent error would suggest this multi family number is not all what the headline makes it out to be. I'll check out the non-seasonal figures after a cup of coffee and report back :)

Tue, 12/20/2011 - 11:44 | 1997633 Precious
Precious's picture

The National Association of Realtors should be prosecuted under the RICO Act.  

Tue, 12/20/2011 - 12:22 | 1997735 redpill
redpill's picture

This is actually the Census this time around, Precious :)

 

Anyway, I had a chance to dig into the release.

 

First things first, the Housing Starts number is entirely meaningless.  The 90% confidence interval is gigantic, and includes zero.  From the release:

 

* 90% confidence interval includes zero. The Census Bureau does not have sufficient statistical evidence to conclude that the actual change is different from zero.

Feel free to read it yourself: http://www.census.gov/construction/nrc/pdf/newresconst.pdf

So really, they don't know if Housing Starts went up or not.  I'd expect not, at least not to that degree, because it would be unusual for multi-family developers to start an unseasonable amount of construction going into winter.  However, they do appear to be pulling permits, assumably to begin construction in the spring in areas which get winter weather.  The permits have a narrower 90% confidence interval because they have a much larger sample size.  But on a year-over-year basis, nearly the entire percentage gain was due to 5+ unit buildings, which in current market conditions is going to mean apartments.

This is similar to what we've seen so far this year, apartment construction increasing as the single-family market hemorrhages homeowners.  While apartment construction is good for some amount of economic activity, the bad news is that for every former homeowner that goes back to renting it means an additional unit of excess inventory in the for-sale housing market.

 

Tue, 12/20/2011 - 18:43 | 1999186 Ganja Jane
Ganja Jane's picture

+1
My first thought was "Well, as the economy collaspes, people who can no longer afford a $3,000/m mortage plus yearly taxes are going to need cheaper housing." Then I thought about buying stock in a tent/camping company. Eureka anyone?

Tue, 12/20/2011 - 10:43 | 1997432 Shizzmoney
Shizzmoney's picture

Right on here.

Bill Maher has echoed this a bit, and it's becoming more evident, my generation 18-30, is becoming a nation of renters.  Unless you want to live in Ohio/Michigan - but that also brings another dilemma because the places where most of the jobs are, also happen to have the highest cost of living.

The majority of us, mired in debt, will never be able to buy a home/get into more debt to get a mortgage due to how "Life Red" most of us are.

Out of my close friends+family+acquaintences in my age bracket, around 35 of them, only 4 own homes.  One works in the Postal Service, so he has a good, stable job (and a profession that bankers SPLOOGE to give loans to).  My cousin works in construction sales and has a wife who is a mortgage broker for a bank, so they got a good deal.  Another is an Optomitrist; but he had to move from MA to MD because the taxes here are so high, and the fact the houses cost an arm and a leg.  And only one I know of actually owns a condo in the Boston area, but he has good-to-do parents who were the collateral (as part of a marriage gift).

Pretty much resigned to the fact I'll never own a place unless I want to move to Bumfuck, USA or win a WSOP bracelet.

Tue, 12/20/2011 - 11:04 | 1997505 MachoMan
MachoMan's picture

I'll throw this one out there skipper...  maybe renting isn't such a bad thing while the nominal prices of the things have nowhere to go but down.  Granted, it's a ploy of timing...  depending on your rent, it doesn't take many years before you should have bought...  but that's what a spreadsheet is for (do your homework).

I'm in your age bracked and I own a home...  but I also live in a place with the lowest cost of living in the country.  And I'm planning on selling come June... 

Rent, save, deleverage...  wait until the weak hands shake out...  hussle a little...  and score a deal.  You're probably not going to get a better rate of return on an investment than paying off debt...   

Tue, 12/20/2011 - 11:14 | 1997538 kridkrid
kridkrid's picture

Yup... the "American Dream" of home ownership is, in part, manufactured.  Promoting housing as the engine to drive the American economy was a highly lobbied for position that required the government to choose winners and losers.  And while he's making his spreadsheet, a handful of items won't fit neatly... like the flexibility provide to a renter.  A little mobility in a job market that absolutely sucks may go a long ways.

Tue, 12/20/2011 - 11:24 | 1997562 tarsubil
tarsubil's picture

Good luck to you. And knowing is half the battle.

Tue, 12/20/2011 - 11:35 | 1997588 Precious
Precious's picture

The National Association of Realtors should be prosecuted under the RICO Act.  Trouble by the Mafia is insignificant compared to the devastation the NAR perpetuated on Americans.

Tue, 12/20/2011 - 11:33 | 1997582 JPM Hater001
JPM Hater001's picture

You are right.  Renting is a good option.  I tried to convince my wife we should sell 2 years ago.  No go.

On the other side of the coin IF there is a debt jubilee you miss out.

Tue, 12/20/2011 - 12:04 | 1997690 MachoMan
MachoMan's picture

That thesis presumes that home prices will increase along with inflation...  I'd say that's incredibly presumptuous and, in all likelihood, impossible...  bread, I'd buy that one...  homes, not so much.

Tue, 12/20/2011 - 11:04 | 1997504 Hansel
Hansel's picture

Again, I'll believe it when I see it.  Banks are withholding REOs and loaning out for new multifamily projects so that people always have to pay.  If the REOs were liquidated, the demand for apartments wouldn't be near as great.  Banks want peasants to pay always, and liquidating REOs doesn't accomplish that.

Tue, 12/20/2011 - 12:00 | 1997676 Don Birnam
Don Birnam's picture

Truth, is it not also correct that simply qualifying for a 12-month lease in a given rental situation ( multi-unit complex, stand-alone single-family home, condo, &c. ) is also becoming much more difficult, as lessors are employing rather strict qualification standards based upon FICO score and/or debt/income ratios ?

We are indeed witnessing -- some, unfortunately, first-hand -- the deconstruction, dollar by dollar, asset by asset, of the middle class.

Tue, 12/20/2011 - 13:12 | 1997725 TruthInSunshine
TruthInSunshine's picture

Hey Don.

As far as the qualifying for a rental unit goes, it very much location AND property owner specific, as far as I know.

For instance, if one has rental units in Washington D.C. (or near the beltway corridor), they're going to be in a position to only accept top notch credit renters, period. The same is true of most areas in most areas within commuting distance of New York City's financial district (incidentally, these are the two modern day welfare queen areas, hands down, thanks to government largesse and raping of taxpayers - government bloat and bail-out kings).

There are pockets of other strong rental activity, too, like La Jolla & Newport Beach, CA, or Albuquerque, NM (where the government space and spy agencies built a bunch of trendy facilities - in Hatch's district in Utah, too, with the Skynet like NSA facility just funded).

But in many, many areas, landlords don't have a great bargaining position, and they are taking renters with less desirable FICO scores and lowering rents (or offering 2 or 3 months free rent, etc.) to get absorption up. Rents are also dropping in many areas of the country, which tends to get washed out when looking at the median and mean values.

I think it's safe to say landlords in many areas will take most renters, even with very bad credit, if they are currently working and can furnish proof of income...

These new units being built are either (a) being built because the existing apartment stock is relatively old (people like newer vs older, all things considered) and have newer amenities like in unit washers/dryers or 1 car garages (these are basically condos on slabs) in areas where the demand for rentals has picked up due to the mortgage crisis or (b) there are a ton of HUD/FHA non-recourse loans being provided through FHA/HUD intermediaries to loan to developers who want to build all subsidized or partially subsidized (20%+ of units in building) rental units, and even some of these loans can be tapped to build all for profit units, but the terms of the loan then change.

In any event, a portion of this uptick in multifamily (apartment) starts is for real, due to the mortgage/housing/economic crisis, and a portion of it is due to more government incentivization and subsidization, using taxpayer money, through non-recourse loans made available to developers with taxpayers bearing the ultimate risk, again (see my post on the next page, because in part, it's also a union 'gimme' by the Obama Administration under the Davis-Bacon Wage Act of 1931).

All in all, this is part deleveraging, as the middle class ownership society (that was part and parcel of a big, fractional reserve banking-enabled Ponzi, whereby credit was cocaine for the last 40 years, and credit was cheap crack cocaine for the last 18+ years, and part government-funding-and-subsidizing-yet-another-specific-asset) myth gets deconstructed by what will be years to be known as The Great Unwind.

Tue, 12/20/2011 - 13:35 | 1997988 Don Birnam
Don Birnam's picture

A detailed, considered response, thanks -- and one which validates much of what I suspected regarding the rental market ( from the lessor's/landlord's perspective ).

I know that over ten years ago ( late- '90s ), when I was renting in the Boston metro area, debt/income ratios were absolutely employed ( for many higher-quality complexes and some condos ) for screening even then; periodically, I will Google some of the old stomping grounds, and nothing has changed -- including the high rates. I agree that it depends entirely upon the landlord, and of course, the supply-demand equation. I know of several former colleagues who were relocated elsewhere in the country, were unable to sell their homes quickly, and have settled in to the title of "landlord," renting out their single-family dwellings. I suspect that unsold homes ( i.e., "necessity" ) represent a fair quantity of single-family and perhaps condo rental stock; single-family as a pure, dedicated income/investment play, not so much.

Tue, 12/20/2011 - 13:20 | 1997945 RickyBobby
RickyBobby's picture

Hey, this is my territory. Yeah, I have been tearing it up in the multifamily space for about a year and it just took another jump higher. Developers that have been sitting on the sidelines for 2-3 years finally got the waive from banks and there is an explosion of this contstruction now in Texas. Assisted Living places are popping up all over the place thanks to your future tax dollars funding grants.

Multi-family starts are very volitile however.

Tue, 12/20/2011 - 13:29 | 1997979 TruthInSunshine
TruthInSunshine's picture

Texas, although now meeting resistance and turbulence (with the possible hotspot of Austin still booming), is a whole 'other country, though, to be fair, no?

And please do correct me if I'm wrong. I've been there about a half dozen times to observe and report back to my handlers, but I will be the first to concede that I never fully understood the Texas dynamics other than the oil & energy trade was helping Texas resist the downturn (even though it was never extended the taxpayer teat as D.C./Virginia/Maryland & NYC were).

Tue, 12/20/2011 - 15:40 | 1998491 RickyBobby
RickyBobby's picture

We are mostly stealing jobs from elsewhere. My best guess is low taxes bring all kinds of business here but oil doesnt hurt. Single family housing is down about 40% in my main markets - Houston, Dallas/Ft Worth / Austin - so we're not exactly where we once were. The multifamily work has been nice though.

The multifamily occupancy rates are about 92%, 88%, and 94% for Dallas, Houston, and Austin, respectively. Thats pretty much full up. Rentals are doing well.

I agree that the inventory overhang will hit prices at some point but most of it is in the lower end. We have the Houston Association of Realtors here which shows all the REO properties and its concentrated on the east side of town. The oil business has people flocking here - Exxon Mobil moving all US employees to Houston for example - and they are well paying jobs. Its the kids coming out of school now that will never buy a house - all they have ever heard is that housing prices fall and its a bad investment. Therefore, apartments are were the demand is for the foreseeable future.

Tue, 12/20/2011 - 10:28 | 1997376 Esso
Esso's picture

They're tearing down the foreclosed houses in my neighborhood. The excavators run from sunup-sundown.

8:00AM, residence. 5:00PM, muddy smear in the ground.

Tue, 12/20/2011 - 10:35 | 1997392 Zymurguy
Zymurguy's picture

That's bull-dozer-ish!!!

Tue, 12/20/2011 - 10:51 | 1997450 Manthong
Manthong's picture

I trust it is the banks doing the demolition, no?

If so, than it is another signifigant element to the wealth transfer story..

Destroy the (public) tax revenue producing aspect of the underlying.. transfer the loss to the government through write-offs and bailouts,, keep the durable aspect - the land.

 

Tue, 12/20/2011 - 11:11 | 1997530 MachoMan
MachoMan's picture

I would guess it wasn't the banks doing the demo...  my guess the culprit is abatement laws...  I can't fathom how the bank wouldn't have to recognize the loss when the building gets destroyed.  Seems the most reasonable thing to do is sell it when the city starts complaining about the condition/habitability...

At that point, they would take a marginal loss on the demo (demo cost > salvage value)...  doesn't make sense.

Of course, you're right that in bailoutnation, businesses have perverted incentives... 

Tue, 12/20/2011 - 11:41 | 1997617 Precious
Precious's picture

The National Association of Realtors should be prosecuted under the RICO Act.  

Tue, 12/20/2011 - 10:51 | 1997454 ptoemmes
ptoemmes's picture

As a possibly somewhat irrelvant data point, I offer the sinlge family housing my daughter and son-in-law are looking at in the Naples, FL area.  Now, I know that things were particulalry inflated there and that they indeed have seen a dramtic percentage drop due to the bubble bursting.

But, it's still $200+ per square foot and the 3-4BR 2-3 bath is about +100K or more that over here Southeast Florida.

And it's not like Southwest Florida is a mecca of industry - clean or otherwise.

Oh - therefore I agree ;-)

 

Pete

Tue, 12/20/2011 - 11:37 | 1997597 Precious
Precious's picture

The National Association of Realtors should be prosecuted under the RICO Act.  

Tue, 12/20/2011 - 19:36 | 1999207 Ganja Jane
Ganja Jane's picture

Your multiple postings of this are annoying.

Tue, 12/20/2011 - 11:22 | 1997558 YBNguy
YBNguy's picture

Your right about that one. They just said on the news that banks were razing scores of houses because no one was buying and they were tired of holding onto the liability...

 

Well shit, no ones buying your [banks] STILL over-priced POS house that you've let become an eye-sore because you have to many properties to 'care' for...

Tue, 12/20/2011 - 11:39 | 1997611 smlbizman
smlbizman's picture

are these numbers based on permits pulled, not actuall ground breaking or closings? i am in middle river maryland, baltimore county...there are currently 6 new housing developments underway.....there are only models built, but i assume that if a devolpment has the potential of a 100 homes, is this not counted as a 100 starts although they will never be built.....also i cannot imagine this money being invested is private capitol, at risk, but some gauranteed form of taxpayer support were tails they win and heads we lose....build it and they will..never mind

Tue, 12/20/2011 - 10:07 | 1997315 FEDbuster
FEDbuster's picture

Property values are falling and property taxes are rising.  Real estate is a sitting duck target for the taxman.  It is obscene.

On a side note, around here they are building a bunch of multi-unit, age 60+ government subsidized apartment buildings.  One of the projects has started a new building with 80+ units every year for the last four years.  These are for low income, social security only income type seniors.  Government pays about half the market rent for these units, seems to be a growth market.  I always thought they should move these people into the giant abandoned dormitories you will find on most major college campuses, let college kids get hands on training taking care of the baby boomers.

Tue, 12/20/2011 - 11:41 | 1997622 Precious
Precious's picture

The National Association of Realtors should be prosecuted under the RICO Act.  

Tue, 12/20/2011 - 13:33 | 1997990 TruthInSunshine
TruthInSunshine's picture

I don't know why anyone would junk FEDbuster.

The property tax racket is one of the biggest scams going.

If you own real estate, you have to pay for services, some of the most expensive ones managed by a woefully inefficient government entity, such as public schools, even though you may have no children, hence not even utilize that service, and to add insult to injury, if you do have children, you may choose to send them to private schools (if you're fortunate enough to be able to) or homeschool them, to keep them away from the drugs, gangs, promiscuity and general filth that is omnipresent in those hallowed institutions of lowest common denomination.

Tue, 12/20/2011 - 18:58 | 1999232 Ganja Jane
Ganja Jane's picture

It's all about the difference in Titles. How many ZH readers would prefer an allodial title?

http://en.wikipedia.org/wiki/Allodial_title

It's my understanding that the states who do issue them, very seldom do.

Tue, 12/20/2011 - 10:13 | 1997326 ArkansasAngie
ArkansasAngie's picture

But ... holding inventory off the market is the only way to play like we should be building anything.  Are we coping China's theory of building for demand that doesn't exist?  The backlog of foreclosure does have to go through.  Insolvency is a bitch. 

Tue, 12/20/2011 - 10:32 | 1997385 Duffminster
Duffminster's picture

I'd say more like 1998 price levels, a reversion to the long term trend.

Tue, 12/20/2011 - 11:42 | 1997624 Precious
Precious's picture

The National Association of Realtors should be prosecuted under the RICO Act.  

Tue, 12/20/2011 - 10:38 | 1997402 Cole Younger
Cole Younger's picture

Actually, in some area's of California the 1981 prices are getting close. A condo that sold for 120K new in 1984 are now selling for 140K. I know as I inherited one and will be selling it. I hate condo's and HOA's.

Tue, 12/20/2011 - 10:58 | 1997478 Stax Edwards
Stax Edwards's picture

Looking at the government data is just too painful anymore. We all know damn well there is no economic activity taking place in this country.  They are playing us for fools.  

And we are buying it by god.  Hell, I have been watching the data coming out and have increased my bullish bets and decreased hedges & shorts. The worst part about the whole thing is that based on the markets reaction, others are being fooled too.  I have actually been profiting from this so called recovery. I feel like such a schmuck.

Tue, 12/20/2011 - 11:36 | 1997595 Precious
Precious's picture

The National Association of Realtors should be prosecuted under the RICO Act.  

Tue, 12/20/2011 - 12:50 | 1997821 lotsoffun
lotsoffun's picture

more hocus-pocus.  the entire new york city region is loaded with empty warehoused dwellings - from those for sale, to those for rent.  there is NO shortage of empty rentals - or people wanting them.  it's more lies from the housing industry - the new 'logic' is - since nobody wants to buy anymore, there will be big demand for rentals.  let them build more rentals - good for me.  more empty propertys keep the prices down.

the solution is going to be import 10 million people from each of china and india to fill the housing.  watch.  just lovely.

 

 

Tue, 12/20/2011 - 16:12 | 1998660 I got the Bull ...
I got the Bull by The Horns - HELP's picture

President: We have a problem. There are so many empty properties. It is keeping a lid on prices. It is causing consumers to feel less wealth effect, I mean this is what Bernanke says is causing consumers to stop spending at the malls.

Faceless Advisor: We could change the immigration laws. Allow the wealthy to flee Iraq, Iran, Russia, China etc. They can repatriate all those US dollars we spent starting wars, paying warlords. This will solve a few things - Housing glut, weak dollar, poor economy, growing BRIC strength (All their dynamic people will flee). Our little wipping boy in Australia, I mean our experiment, has done this years ago. This is why their housing is the most expensive in the world. They have not had a recession in 20 years.

Tue, 12/20/2011 - 09:58 | 1997283 Irish66
Irish66's picture

rooms for rent

Tue, 12/20/2011 - 10:16 | 1997333 Sean7k
Sean7k's picture

fifty cents, no phone, no food, no pets..I ain't got no cigarettes. I smoke old stoggies I have found, short, but not to big around, I'm a man of means by no means- King of the Road!

New National Anthem?

Tue, 12/20/2011 - 11:01 | 1997482 FEDbuster
FEDbuster's picture

May I also suggest:

I'm going home and when I wanna go home
I'm going mobile
I'm gonna find a home and we'll see how it feels
Going mobile
Keep me moving
Keep moving
Keep moving

I don't care about pollution
I'm an air-conditioned gypsy
That's my solution
Watch the police and the tax man miss me
I'm mobile
I'm mobile

Going Mobile, The Who

Tue, 12/20/2011 - 09:58 | 1997284 Tsar Pointless
Tsar Pointless's picture

Perception > reality.

HFT bots - Santa is here, and he's ready to get his rally on!

Tue, 12/20/2011 - 10:01 | 1997298 Tsar Pointless
Tsar Pointless's picture

BTW, if you're keeping score at home, this is the fourth trading day in a row with a pre-market gap up.

Totally reasonable. (Yes, that is sarcasm.)

Tue, 12/20/2011 - 10:20 | 1997347 HarryM
HarryM's picture

As the sign at your local pub says - "Free Beer - Tommorrow"

Tue, 12/20/2011 - 10:51 | 1997453 junkyardjack
junkyardjack's picture

I thought the HFT just exaggerate whatever the market does, no one wants in on this market so they are just going to push it further down

Tue, 12/20/2011 - 09:58 | 1997285 SheepDog-One
SheepDog-One's picture

I hope its immediately faded. Im real sick of these lipstick on the pig data dumps.

Tue, 12/20/2011 - 10:12 | 1997325 Odin
Odin's picture

Bet ya it doesn't exceed +135 on the Dow all day... The hopium is wearing off faster and faster these days... The junkie needs better drugs...

Tue, 12/20/2011 - 10:32 | 1997384 mckee
mckee's picture

DOH!

Tue, 12/20/2011 - 10:42 | 1997426 Odin
Odin's picture

lol shiiit maan... Regardless im sure the Tylers are right about it not lasting more than a day...

Tue, 12/20/2011 - 11:05 | 1997509 mckee
mckee's picture

Yeah... sorry I couldn't resist, it was teed up too well. It'll go down soon enough.

Tue, 12/20/2011 - 10:25 | 1997362 Village Smithy
Village Smithy's picture

Most overnight gap ups in this December have sold off during the day, but we all know how far and how fast this market can rise when its being fully jumped.

Tue, 12/20/2011 - 10:38 | 1997406 SimpleandConfused
SimpleandConfused's picture

Sick of a market increases that make no sense or have a basis in reality? 

If so, then you might want to load up on the pepto.  I agree with the article in the sense the rally is upon us.  I just believe it is going to last a lot longer than thru Christmas.  I just don't see where else money can go except PMs.  Interest rates are zip forever and QE(n) is coming so I'm guessing it will soon be off to the races.  Maybe DOW14K?

Does this mean anything to the prosperity of most Americans? No.  Matter of fact, the rise in the market will most likely track a decline in the real standard of living.  Sad times SheepDog.  Really sad times.

Tue, 12/20/2011 - 09:59 | 1997289 BlueStreet
BlueStreet's picture

Good pop for the hedgies to start their redemption selling. 

Tue, 12/20/2011 - 10:46 | 1997444 junkyardjack
junkyardjack's picture

They should have at least waited a half an hour before they started dumping into it

Tue, 12/20/2011 - 09:59 | 1997290 101 years and c...
101 years and counting's picture

yahoo finance headline:  "Housing starts surged to a 1-1/2 year high in November and permits for future construction were the highest since March 2010 as demand for rental apartments rose, offering hope for the weak housing market. "

folks, doesnt get much funnier than that.

Tue, 12/20/2011 - 10:05 | 1997308 smithcreek
smithcreek's picture

No shit.  Time to invest in section 8 housing units.  Won't be long until they are chopping up all the McMansions into multi-units.  Seems silly to think it could happen, but I'll bet that's what people thought 100 years ago about all the beautiful Victorians in just about every city in the US.

Tue, 12/20/2011 - 10:08 | 1997318 kridkrid
kridkrid's picture

Where I live, they have spent the last 10-15 years converting those beautiful Victorians back into single family homes... just in time... to divide them back up again.  They are beautiful homes (with tiny little closets).

Tue, 12/20/2011 - 11:40 | 1997614 Precious
Precious's picture

The National Association of Realtors should be prosecuted under the RICO Act.  

Tue, 12/20/2011 - 15:24 | 1998464 I got the Bull ...
I got the Bull by The Horns - HELP's picture

That is the most insightful comment I have heard in months. In Australia, the last housing boom was over 100 years ago, and they did the same thing back then.

 

We have not had a property collapse yet, but I reckon you might have an idea. I will lobby the council to be able to split Australian McMansions. Most have 4 Bathrooms.. Just need to add another kitchen upstairs!

Tue, 12/20/2011 - 10:06 | 1997311 kridkrid
kridkrid's picture

investors aren't interested in gold because it isn't backed by anything.  The dollar is backed by the federal reserve.

Tue, 12/20/2011 - 10:32 | 1997382 mess nonster
mess nonster's picture

"Investors aren't interested in gold because it isn't backed by anything."

God, that's funny. This has to be my all-time favorite ZH quote. I promise, i will use this over and over again, forever.

Tue, 12/20/2011 - 10:39 | 1997407 Urban Roman
Urban Roman's picture

I'm so tired of gold I'm thinking of tossing my krugerrands in the dumpster behined Wendy's.

Tue, 12/20/2011 - 10:55 | 1997471 kridkrid
kridkrid's picture

gold is too heavy.  Better to unload the heavy stuff first.

Tue, 12/20/2011 - 11:32 | 1997581 tarsubil
tarsubil's picture

I'm willing to dispose of all gold waste for a small fee.

Tue, 12/20/2011 - 15:07 | 1998388 Fuckin Floyd
Fuckin Floyd's picture

Which Wendy's?

Tue, 12/20/2011 - 11:00 | 1997486 Silenus
Silenus's picture

The thinking goes: gold is dangerous because it isn't backed by institutional power, like the dollar is. They're assuming institutional power is more reliable than gold, which they're likely predisposed to do because these people are major beneficiaries of institutional power.

Tue, 12/20/2011 - 11:39 | 1997607 krispkritter
krispkritter's picture

She said it on TV so it must be true! http://www.youtube.com/watch?v=9fzO_YhOYNQ

Tue, 12/20/2011 - 10:11 | 1997320 scatterbrains
scatterbrains's picture

If they use the substitution bias as they do in calculating inflation then I would expect a new boom market in housing once they start to count all the tents, vans and cardboard boxes down by the river. 

Tue, 12/20/2011 - 10:40 | 1997414 SimpleandConfused
SimpleandConfused's picture

That is funny.  Not as funny as Italy giving money to the IMF to assist in the bailout of Italy, but still funny.

Tue, 12/20/2011 - 10:00 | 1997292 GeneMarchbanks
GeneMarchbanks's picture

'the US Department of Truth' & 'knows are nothing but inventory padding by homebuilders who "build just to build."

US = a round eyed China.

Tue, 12/20/2011 - 11:37 | 1997600 Precious
Precious's picture

The National Association of Realtors should be prosecuted under the RICO Act.  

Tue, 12/20/2011 - 10:01 | 1997293 1835jackson
1835jackson's picture

voices tell me I should wear a thong...

 

Tue, 12/20/2011 - 11:03 | 1997495 scatterbrains
scatterbrains's picture

That be you Sheri from next door with the big picture window ? What your hearing is my telepathic signals and it's important that you follow them.

Tue, 12/20/2011 - 10:01 | 1997294 firstdivision
firstdivision's picture

QE3 off...'til after the holiday.  Can't have a down week when its Christmas.

Tue, 12/20/2011 - 11:08 | 1997516 FEDbuster
FEDbuster's picture

Keep the "wealth effect" vibe going through New Years?  Trap people into thinking, maybe the market will keep rising, no need to take losses now?

Tue, 12/20/2011 - 10:02 | 1997299 devo
devo's picture

Funny. Adults moving into multi-family homes just confirms middle class desperation and poverty, yet the algos believe this is good news.

Also, do algos realize homes are depreciating assets?

Tue, 12/20/2011 - 11:10 | 1997524 FEDbuster
FEDbuster's picture

Better than moving back into Mom and Dad's basement.

Tue, 12/20/2011 - 11:40 | 1997616 krispkritter
krispkritter's picture

Isn't that just a split-level multi-family home then?

Tue, 12/20/2011 - 14:57 | 1998358 FEDbuster
FEDbuster's picture

More like a bad case of the "Subterranean Homesick Blues".

Tue, 12/20/2011 - 11:43 | 1997630 Precious
Precious's picture

The National Association of Realtors should be prosecuted under the RICO Act.  

Tue, 12/20/2011 - 10:03 | 1997301 bigdumbnugly
bigdumbnugly's picture

builders that 'build just to build.'  makes em sound like they're bad.

i sometimes have 'sex just to have sex.'   but i don't necessarily want to live with em either.

 

Tue, 12/20/2011 - 10:03 | 1997302 Hansel
Hansel's picture

The Santa Claus Rally™ is here!  One day only!  Don't miss out!  Buy now or forever hold your peas!

Tue, 12/20/2011 - 10:03 | 1997303 BlueStreet
BlueStreet's picture

According to Yahoo housing is turning around:

22-year-old buys $88 million apartment

 

 

Tue, 12/20/2011 - 10:03 | 1997304 Whoa Dammit
Whoa Dammit's picture

Multi-family is driven almost entirely by Section 8. When the .gov is forced to cut back on the program, mutli-family investments will go belly up.

Tue, 12/20/2011 - 12:10 | 1997706 Calmyourself
Calmyourself's picture

Any data on this or just supposition?  Honest question..

Tue, 12/20/2011 - 10:04 | 1997305 dick cheneys ghost
dick cheneys ghost's picture

Are they including recently built FEMA camps?

Tue, 12/20/2011 - 10:05 | 1997309 lolmao500
lolmao500's picture

And the little ``double counting`` which they admitted.

Tue, 12/20/2011 - 10:19 | 1997344 WonderDawg
WonderDawg's picture

That's a different organization and different report.

Tue, 12/20/2011 - 11:43 | 1997631 Precious
Precious's picture

The National Association of Realtors should be prosecuted under the RICO Act.  

Tue, 12/20/2011 - 10:06 | 1997312 lolmao500
lolmao500's picture

but inventory padding by homebuilders who "build just to build."

Hell China has been doing that for what, 5 years now, and it's been working. 60+ million empty homes in China...

Tue, 12/20/2011 - 10:07 | 1997316 youLilQuantFuker
youLilQuantFuker's picture

Tear them down in East Cleveland and build them up in Cleveland Heights.

Long Landfills!

Tue, 12/20/2011 - 10:17 | 1997335 SteveGennisonBa...
SteveGennisonBallWasher's picture

Yup, you sound like a Clevelander.  I live in Mentor, you should see the "urbanites" moving in droves here near me at Mentor-on-the-Lake.  All section 8 housing.  Mentor was a great place to live 5 years ago

Tue, 12/20/2011 - 11:14 | 1997531 youLilQuantFuker
youLilQuantFuker's picture

Yea tell me about it. I live down in The Flats. It's changing into a dump. I can park my boat at my condo and grab some beers close by but all my neighbors are walking around with their pants hanging half off slinging and crack rocks.

I wish the FBI would come to town with some productive answers to these problems but instead they bring their cousins (CIA) to supply the base coke and baking soda for my neighbors. Plus they hand out 80% housing subsidies and free food as a reward to these scum fucks. Nice job guys. Way to fuck your country.

Tue, 12/20/2011 - 11:39 | 1997610 Precious
Precious's picture

The National Association of Realtors should be prosecuted under the RICO Act.  

Tue, 12/20/2011 - 15:19 | 1998444 I got the Bull ...
I got the Bull by The Horns - HELP's picture

hahahah the 1% brought you slavery, and made a fortune, and now they laugh as the emancipated hassle your daughters for a good time.

 

Got to keep the gene pool of the 1% reptilians pure hey. They don't call them Blue Bloods for nothing. God Created Adam and Eve (1%) then he created the 99% with a different root stock.

Tue, 12/20/2011 - 10:08 | 1997317 1835jackson
1835jackson's picture

Reality is Dow is worth about an oz of AU. 

Tue, 12/20/2011 - 10:09 | 1997319 vipmoneymachine
vipmoneymachine's picture

Back to 12500 Dow before the end of the year. Bankers need bonus. All news this week and next will be better.

Tue, 12/20/2011 - 10:14 | 1997328 jimcg
jimcg's picture

Pure Idiocity!

We need to build more housing units because we have too much housing unit inventory....about ten years too many. Got it?

 

J

 

Tue, 12/20/2011 - 11:38 | 1997603 Precious
Precious's picture

The National Association of Realtors should be prosecuted under the RICO Act.  

Tue, 12/20/2011 - 10:14 | 1997329 firstdivision
firstdivision's picture

Holy shit!  WTI is fucking loony today.  Up almost 3%!

Tue, 12/20/2011 - 11:15 | 1997539 Hohum
Hohum's picture

WTI isn't loony.  Equities rise, WTI rises.  And it seems if equities rise, WTI rises faster.  If equities fall, WTI often falls faster.  You can look at WTI and usually figure out how the DOW is doing.

Tue, 12/20/2011 - 10:23 | 1997356 azzhatter
azzhatter's picture

But how else can we keep all of Obozo's illegal immigrants working? We must install chinese drywall in Sec 8 housing projects to keep the ponzi going. Apparently you don't understand central planning. It's all good. 

Tue, 12/20/2011 - 10:25 | 1997363 kralizec
kralizec's picture

"But hey - it fooled the robots. And now it will take at least 12-24 hours before vacuum tubes process the reality of this latest spin. By then, however, we may well have had our Christmas rally."

LOL! 

Tue, 12/20/2011 - 10:27 | 1997370 bnbdnb
bnbdnb's picture

Rally stops at $100 oil. Again.

Tue, 12/20/2011 - 10:32 | 1997383 lunaticfringe
lunaticfringe's picture

Rooming houses for the serfs. Woo fucking hoo!

Tue, 12/20/2011 - 10:34 | 1997387 vegas
vegas's picture

Doesn't matter - all gov agencies in re-elect Soetero mode. Expect massive fraud and statistical lies between now and Nov. 2012. Who gives a fuck if they are all lies: the HFT's love it. Dow to the moon Alice!

 

http://vegasxau.blogspot.com

Tue, 12/20/2011 - 10:36 | 1997397 PulauHantu29
PulauHantu29's picture

Construction quality stinks in many places especially where they are STILL handing out zero down houses.

 

Tue, 12/20/2011 - 11:39 | 1997604 Precious
Precious's picture

The National Association of Realtors should be prosecuted under the RICO Act.  

Tue, 12/20/2011 - 10:40 | 1997409 junkyardjack
junkyardjack's picture

Christmas Rally On! No Volume, Everyone push the price up quick

Tue, 12/20/2011 - 10:40 | 1997413 lizzy36
lizzy36's picture

Funny that nobody looks into details.

As long as we get a seasonally adjusted, better number. It doesn't matter if it is a mirage.The details only matter after the fact.

Amazing how well propoganda works.

Tue, 12/20/2011 - 10:59 | 1997483 boiltherich
boiltherich's picture

Also, has this not been the warmest and driest onset to winter in 20 years?  Here we have not had a single day of rain or snow since Thanksgiving, and only two light days since Halloween when we normally have our wettest months averaging 27 days of rain Nov/Dec.   

Tue, 12/20/2011 - 10:41 | 1997417 marcusfenix
marcusfenix's picture

the federal govt is quickly becoming the home building, property rights ignoring, student loan lending, sub prime mortgage backing, police state security providing, medical care assigning, SNAP food on the table purveying, lender, subsidizer and dictator of first, last and only resort.

damn, they don't even need the executive orders anymore, they already control everything worth controlling in this country and with the passage  of the NDAA bill they can throw you in a hole forever for not getting with the program.

Orwell must be rolling in his grave, kicking himself for having provided the instruction manual...

Tue, 12/20/2011 - 11:01 | 1997484 TruthInSunshine
TruthInSunshine's picture

This is also true.

A huge % of these multifamily unit (i.e. apartments) permits/starts are the result of non-recourse loans being made by entities backed by 100% taxpayer guaranteed loans for subsidized housing (either straight up welfare, or some hybrid whereby 20%+ of the units have to be dedicated for "low income housing" via HUD/FHA - which is the stick that comes with the carrot of being able to get the non-recourse loan).

This is also leading to a huge scam b/c the intermediaries that process these loans are hand picked by FHA/HUD, they charge a pretty hefty fee to administer these FHA/HUD backed non-recourse loans (so they have no exposure to losses, as the loan is purchased by taxpayers before the properties are even rented), and the developers tapping these loans can walk away from the projects if things go south, leaving the taxpayers with the property and on the hook for the losses that inevitably result (the developers having no personal liability under any condition).

One more thing - this is a union 'gimme' from the ObaMao Admin. I hate to get political here, but that's the cold reality. These projects have to be built using union trades under The Davis-Bacon Wage Act of 1931. So, it's even more likely that many of these projects would make zero sense if pure economic incentives were driving them -

- especially since they're being built at a 20%+ premium had the use of union trades not been mandated.

***Some of these apartments are pure private sector builds, not being dependent (at least directly on HUD/FHA) on government loans, since there really is a demand for newer stock of apartment housing, given the overall economy and credit conditions in the mortgage market.

Tue, 12/20/2011 - 11:38 | 1997602 Precious
Precious's picture

The National Association of Realtors should be prosecuted under the RICO Act.  

Tue, 12/20/2011 - 11:48 | 1997637 Blankman
Blankman's picture

Recently did some work for a guy who is putting up these 5 unit rentals.  He has them rented before they are even built.  4 out of 5 are rented to people who just lost their homes the other 1 out of 5 is typically rented to divorcees.  The owner puts up 2 - 4 of these buildings per year and is doing great.  All private sector builds.  

Tue, 12/20/2011 - 11:36 | 1997592 JPM Hater001
JPM Hater001's picture

You have to wonder if the government isnt preparing for the collapse by accumulating the debt so once forgiven private equity will take as small a hit as possible.

I prefer to believe they just want to protect the Squid and all their friends but I'm just saying...if you want a theory.

Tue, 12/20/2011 - 10:43 | 1997431 1971
1971's picture

Little pink houses for you and me, ain't that America.

Tue, 12/20/2011 - 12:00 | 1997679 DaveyJones
DaveyJones's picture

little red houses

Tue, 12/20/2011 - 12:28 | 1997753 TruthInSunshine
TruthInSunshine's picture

Little chicken coupes, bitchez.

If we don't get a miracle, that's exactly where we're headed.

For those who travel abroad extensively, even their 'middle class' live in chicken coupes where government f*cks everything up and breaks the markets, like Bernankio & Timmay are now so ably demonstrating that even Amerika is capable of doing.

Tue, 12/20/2011 - 10:48 | 1997449 boiltherich
boiltherich's picture

CNBS said this today:

Housing starts surged to a 1-1/2 year high and permits for future construction were the highest since March 2010 as demand for rental apartments rose, offering hope for the weak housing market.

Of course now that there are millions of vacant single family units with millions more in default or some stage of foreclosure rents have skyrocketed and demand for rental units is sooner or later going to drive a building spree for multi-family housing.  Here in this valley the only residential construction is low income multi-family.  But, construction data did get a big bump a couple months ago from the taping of Extreme Home Makeover which built a million dollar compound for one local down on it's luck family. 

CNBS as always sugar coated the story but at least this time they did not outright lie.  And not to rain on their parade but even this little increase to 685,000 (to be revised downward) is still depressionary level building activity.  Perspective is called for. 

Tue, 12/20/2011 - 10:56 | 1997472 Snakeeyes
Snakeeyes's picture

But seriously, look at the charts! This is a small drop in a big bucket. Whether its channel stuffing or not, this is tiny.

Good News: Housing Starts up 9.3% in November, Permits Up 5.7%, Foreclosure (Real Estate Owned) Declines

http://confoundedinterest.wordpress.com/2011/12/20/housing-starts-up-9-3...

Tue, 12/20/2011 - 11:46 | 1997636 Precious
Precious's picture

The National Association of Realtors should be prosecuted under the RICO Act.  

Tue, 12/20/2011 - 10:58 | 1997477 Tsar Pointless
Tsar Pointless's picture

http://www.esa.doc.gov/sites/default/files/ei/documents/2011/December/newresidentialconstructionnovember2011.pdf

Not-seasonally adjusted, housing starts were down M/O/M in November 2011.

Tue, 12/20/2011 - 11:01 | 1997492 TheHillrat
TheHillrat's picture

Feel sorry for those that put on the FAZ trades at the end of the day yesterday after BAC closed below $5

Tue, 12/20/2011 - 11:18 | 1997550 SimpleandConfused
SimpleandConfused's picture

You're right.  I read the ZH post anf thought that had some meaning for the markets but I guess it just meant time to juice the thing.  Bad news is good news and good news is good news.  I see BAC at 5+ for the moment.

I can trade the one minute bars.  I cannot imagine holding a position overnight.  I have no line to the fed.

Tue, 12/20/2011 - 11:03 | 1997501 JMT
JMT's picture

It costs more to rent over the longer term than to own plus rents are also rising by 5% - 20% a year in most markets or when your lease renews. Plus now you must have nearly perfect credit & stable employment to get accpeted by most property managers & landlords. so it isn't that people who are renting are doing so because they "Don't have the credit score or employment to qualify for a mortgage", they are doing it likely (at least the 18-30 crowd) because they don't want to sacrific things like designer clothing, eating out, that $600 a month car payment for something as inconvienient as saving for a down payment (you need one to buy a home where as you only need 1.5 - 2 times monthly rent to move into a rental apartment).

I live outside of Boston, my rent has gone up by over 10% a year the last few years but still cheaper than moving. You cannot find any decent apartment for less than $2,000 a month now in most of eastern Massachusetts (actually anywhere east of Worcester) and a crappy starter home built in the 1920's (or earlier) starts at over $600,000 in most towns.   Most of these kids who went to college & stayed in the area have very well to do parents who probably pay their monthly rent since they likely paid their $60,000 a year cost to college

Tue, 12/20/2011 - 11:26 | 1997563 SimpleandConfused
SimpleandConfused's picture

WOW!  With rents and home prices being sustained at those levels, I'm guessing your economy is booming.  The Obama miracle?  The Biden Summer of Recovery?

This confuses me.  Everyday, ZH provides information detailing how bad things are but when you look around you see folks such as yourself telling stories of an economic boom.  If things are so bad, how the hell can people pay 10% annual rent increases?  I travel and the roads are packed, wait in line for $3.50 gasoline and can't find a place to park in the mall.  The Outback has people lined up outside for a $30 meal and the BK/McDonalds are literal zoos!

As usual, I remain confused.  But it appears to me that things just aren't all that bad.

Tue, 12/20/2011 - 11:46 | 1997635 Precious
Precious's picture

The National Association of Realtors should be prosecuted under the RICO Act.  

Tue, 12/20/2011 - 11:59 | 1997674 Precious
Precious's picture

Times aren't that bad if you are a nurse or some other health care person, or work for the federal or state government.  What have they suffered.  Nothing. 

Tue, 12/20/2011 - 12:04 | 1997687 adr
adr's picture

wow you must live in a very nice bubble because I see none of that in my travels over anywhere in the real country, ie outside NYC and the goo parts of LA. Chicago's economy has gone down the drain.  It is cheaper to go get the $9.99 Outback sirloin steak special than to go buy steak at the grocery store, maybe that accounts forthat full parking lot. Even though it's shit it is impossible to buy the supplies to make 10 hamburgers for $10 but you can buy 10 double cheeseburgers at McDonalds for $10. 

Tue, 12/20/2011 - 12:05 | 1997693 marcusfenix
marcusfenix's picture

47 million Americans rely on govt assistance to provide the most basic of necessities, food.

since the collapse of 2008 and the following "recovery" that number has done nothing but increase, this figure does not reflect children of those who are enrolled in the SNAP program but estimates show roughly 1 in 3 children rely on these programs to eat. that means at a low end conservative estimate there are some 147 million people, or 1/3 of the population would not be able to eat if not for Uncle Sam founding the feast.and that number continues to do nothing but increase at a rate of about one new enroll every minute.

this is not indicative of a real recovery, if there was a recovery you would see a corresponding decrease in those who rely on federal assistance to put food on the table.

maybe where you live things are going well and I hope that is the case truly, but for many of us the "recovery" of which you speak is absent and nowhere to be found...

Tue, 12/20/2011 - 11:03 | 1997502 JMT
JMT's picture

It costs more to rent over the longer term than to own plus rents are also rising by 5% - 20% a year in most markets or when your lease renews. Plus now you must have nearly perfect credit & stable employment to get accpeted by most property managers & landlords. so it isn't that people who are renting are doing so because they "Don't have the credit score or employment to qualify for a mortgage", they are doing it likely (at least the 18-30 crowd) because they don't want to sacrific things like designer clothing, eating out, that $600 a month car payment for something as inconvienient as saving for a down payment (you need one to buy a home where as you only need 1.5 - 2 times monthly rent to move into a rental apartment).

I live outside of Boston, my rent has gone up by over 10% a year the last few years but still cheaper than moving. You cannot find any decent apartment for less than $2,000 a month now in most of eastern Massachusetts (actually anywhere east of Worcester) and a crappy starter home built in the 1920's (or earlier) starts at over $600,000 in most towns.   Most of these kids who went to college & stayed in the area have very well to do parents who probably pay their monthly rent since they likely paid their $60,000 a year cost to college

Tue, 12/20/2011 - 11:56 | 1997664 adr
adr's picture

Government welfare housing has been going up at an alarming rate. They are bulldozing all the old welfare projects and building up swanky multi family units that look better than the $350k+ condos most people bought over the past few years. The only thing padding builders pockets right now is government transfers just like everything else. The new welfare project is a brand new 1200 sq ft townhouse with sidewalks 1950s style streetlamps and picturesque parks filled with brand new playground equipment for the 15 little mouths every welfare queen pops out. Seriously if  took some photos of the new low income housing project in the Akron Ohio ghetto you would never believe it. A personmaking $100k a year in LA would kill for a place as nice. Sure in ten years the brand new project will look like the worst of Detroit, but hell then they can bulldoze it and pad the builders books some more.

Tue, 12/20/2011 - 12:14 | 1997692 Winston Smith 2009
Winston Smith 2009's picture

I suspect that this is an apartment building boom that took a while to get going.  Now, there is a realization that individual home ownership in the US is becoming a thing of the past, perhaps permanently.  There is an increased demand that is being met with new construction while millions of single family units stand empty.  This is a shift from owning a home, but being anchored in one place because of it which is a very bad thing in an era of high unemployment, to renting and being much more mobile. 

In my mid-sized urban area, I've noticed large apartment complexes going up all over the place while other forms of construction like single family homes and commercial construction still remain at nearly zero.

Tue, 12/20/2011 - 13:34 | 1997965 Double.Eagle.Gold
Double.Eagle.Gold's picture

Can't afford to own, maybe it's time to rollback 3 generations -> large extended families.

What's better, being sliced-up individually or standing together and protecting our own.

Start with family, in whatever form. Reaching out, strengthening. Family first, then neighborhood, township, and city.

The elites have invested 100 years breaking the family, time to bar the door & hold our own.

Tue, 12/20/2011 - 13:35 | 1997966 Double.Eagle.Gold
Double.Eagle.Gold's picture

Two together, four, then sixteen. At some point, we become unbreakable.

Think about this during the holiday season.

They have us fighting among one-another, while we should be working with one another.

Hold your tounge when you feel the anger towards something a relative says, hold it, internalize it, and realize this is exactly how our Masters want us -- against one another, rather than united.

Tue, 12/20/2011 - 13:26 | 1997972 Bicycle Repairman
Bicycle Repairman's picture

The RE market has held up in my city.  Now there are 5 or 6 projects near by where developers are going to build 100 unit (2 bedrooms per) projects.  These buildings look just like college dormitories and should really degrade the quality of living here.  There are already build projects that are not fully rented as it is.

There is no stigma living with mom and dad into your 30s anymore.  Why pay $1,500 in rent when you can pay $300 for dads basement?

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