Housing start data was released a little over an hour ago, and September was up 15% to the highest level in seventeen months. A fair number of the starts were multi-family construction, facilitating America's conversion to being a nation of renters. This is probably good news for builders, and they certainly could use some good news. It is, however, mixed news for homeowners who would benefit from inventory drawdown more than increased construction activity.
There is something that just doesn't seem right about the immobility of homeowners today. There are so many folks underwater that they have no traditional way to make the home upgrades that they want and feel that they need. The three most common alternatives for homeowners who want to change homes are, forget it and stay where they are, walk away, or rent the place out and become a renter in a different home that is more suitable.
There are creative alternatives to the immobility of current homeowners who have no traditional way to change homes. Unfortunately, most require some government action. At this time, government action seems mostly based on a goal of creating more renters.
If you are willing and able to make lemonade of those lemons, now is probably the best time to wade into the world of investing in income property. Call if you want to talk.
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