Housing Starts, Mortgage Credit Scores And Homeownership-----Explained in 3 Charts

Housing starts for the month of August tumbled 6% across both 1 unit and 5+ unit starts.


1 unit starts (single-family detached) have been rising slowly since bottoming out in 2009. One reason is the disappearance of mortgage credit for borrowers with credit scores less than 620.


But multifamily housing (5+ units) starts have grown rapidly since January 2009. Borrowers without access to mortgage credit shift over to multifamily housing.


US homeownership rates are back to 1965 levels.


And President Lyndon B. Johnson’s “Great Society” programs.


Apparently, LBJ’s “Great Society” ran into a green Kryptonite problem. Known as a credit bubble.


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