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.

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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.

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

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US homeownership rates are back to 1965 levels.

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

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

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