Housing Starts, Permits Plunge In February As Rental Units Crash

Amid two months of dismal housing sales data, and after spiking in January, starts and permits just plunged in February, driven by a collapse in multi-family unit data.

The 7.0% plunge in housing starts (-2.7% exp) is tied with the biggest drop since March 2017 and the 5.7% tumble in permits (-4.1% exp) is the biggest since February 2017...

 

Year-over-year, the picture is just as bad...

 

The drop was led by a collapse in multifamily units - Multifamily Starts down 28% MoM on an annualized basis

 

And Multifamily Permits down 14.6% MoM on an annualized basis...

 

And this dismal data extends the drop in US housing data as the effects of the Hurricanes and Storms fades fast...

 

Probably a good time to hike rates 4 or 5 more times this year!

Comments

Philo Beddoe ejmoosa Fri, 03/16/2018 - 09:30 Permalink

I could not agree more. 

When my final days are near I plan on taking a shitload of painkillers, legal or illegal, and drink whiskey again until the Good Lord calls me home. Listen to some of my favorite music and pass the time with whatever friends and family happen to be around. 

Whatever $$ I have left will got to whoever I want (kids) and not some fucking death care facility. 

In reply to by ejmoosa

chemcounter lester1 Fri, 03/16/2018 - 09:27 Permalink

University debt and a worthless degree

Mortgage slave on one unit of a multi family home

Debt slave on a car that depreciates faster than the principle on the loan

Credit card interest and fees for the things that go wrong

Add some taxes and a spouse with all the same debt load ... welcome to the American Dream

In reply to by lester1

GotAFriendInBen Fri, 03/16/2018 - 09:14 Permalink

Makes perfect sense on multifamily drop

Number of huge apt complexes built these last few years is insane

Trump will need to bang some illegal Chiquitas to get these things filled

Let it Go Fri, 03/16/2018 - 09:27 Permalink

My frustration with America's housing policy boiled over when I read a piece about how roughly 80% of new apartment construction was for the high-end luxury market. The government holds huge responsibility for a rising share of our housing problems in low-income situations because its policies avoid dealing with the growing number of tenants that are irresponsible.

Government housing cherry-picks the best of the low-income renters providing them with very low rents and nice apartments and dumps the rest on the private sector. The following piece argues the best way to address or level the playing field would be to move away from public housing and give those needing housing aid "rent only vouchers" that could be used with any landlord rather than putting these people into a quasi-government ran project.

 http://Housing Policy Feeds And Hides Growing Problems.html

PitBullsRule Fri, 03/16/2018 - 09:50 Permalink

Oh no!

Housing is tanking! It must be, because Zero Hedge is predicting its tanking for the 5000th time! This time they are gonna be right! Time to panic! AAAAHHHH! I'm SCARED!!

bigloser Fri, 03/16/2018 - 10:14 Permalink

The bubble will be burst, and, like the bulbous pimple it is, when it blows, it will spew all manner of deflationary puss on everything.

To Hell In A H… Fri, 03/16/2018 - 10:19 Permalink

I have a cure to this problem my fellow Zerohedgers. Let's lobby the money-changers to inject copious amount of extra Q.E, in the housing bubble, in order to keep this merry-go-round going. What can possibly go wrong? It's a win-win for everybody.

KAG