Last week the Commerce Department released December housing starts data showing a big increase in the headline numbers. These numbers represent a flawed, seasonally adjusted impression of reality. But they suffer from a bigger problem. They combine data from two fundamentally different industries, single family housing development and multifamily development. Single family constitutes the bulk of the market, with about 2/3 of the market. Even though multifamily is smaller, it sends important signals about the state of the economy and deserves a closer look on that basis.
Multifamily Housing Development Is Heading For A Bust
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David Stockman’s Contra Corner isn’t your typical financial tipsheet. Instead it’s an ongoing dialogue about what’s really happening in the markets… the economy… and governments… so you can understand the world around you and make better decisions for yourself.
David believes the world -- certainly the United States -- is at a great inflection point in human history. The massive credit inflation of the last three decades has reached its apogee and is now going to splatter spectacularly.
This will have lasting ramifications on how governments tax and regulate you… the type of work you and your family members will have available and what you get paid… the value of your nest egg… and all other areas comprising your quality of life.