Housing Starts Suffer Worst Streak Since Jan 2009, Permits Plunge

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!!


GUS100CORRINA robertsgt40 Fri, 06/16/2017 - 08:50 Permalink

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!!!

In reply to by robertsgt40

pitchforksanonymous Fri, 06/16/2017 - 08:46 Permalink

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. 

2banana Fri, 06/16/2017 - 08:48 Permalink

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 Fri, 06/16/2017 - 08:52 Permalink

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_… Fri, 06/16/2017 - 08:52 Permalink

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.

GodHelpAmerica Fri, 06/16/2017 - 08:53 Permalink

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.

yogibear Fri, 06/16/2017 - 09:00 Permalink

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 Fri, 06/16/2017 - 09:03 Permalink

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!!</sarc>

GodHelpAmerica Fri, 06/16/2017 - 09:09 Permalink

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

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

Ricki13th Fri, 06/16/2017 - 09:08 Permalink

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.

Ricki13th Fri, 06/16/2017 - 09:08 Permalink

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 Fri, 06/16/2017 - 09:26 Permalink

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.

William Dorritt Fri, 06/16/2017 - 09:52 Permalink

Since the Middle Class is being Erased..... The Suppliers to the Middle Class are being Erased tooIn this case, the Home Builders. Median Household is now taxed at 62%

Russdiamon Fri, 06/16/2017 - 10:10 Permalink

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