Housing starts surge in July -- so what?

By
Industry Observer

It's good news, bad news again.  Housing starts for July were up over fifteen percent.  On the surface it sounds really promising, until you get to the part that housing starts were mostly apartment buildings. 

Throughout the depths of the real estate crash, the government response has been to help people leave the homes they thought they owned and return to being renters.  There were programs to help folks short sell their homes, and there were programs that encouraged banks to lighten the monthly payment load just enough to squeeze a few more bucks out of the distressed home "owner" before they finally were shown the exit.

Coupled with the "return to renting" theme supported by our government was a way to keep potential new home buyers out of the market.  They called it "tightening lending criteria."  So, we have people being encouraged to leave their homes and find a nice rental, and we have people who want a home of their own being told to go occupy one of those nice new apartments being built everywhere.  We are about to cross the line to become a nation of renters.  Some would claim that it's not our leaders' intent, and some would see it for what it has become.  Thank you, Mr. President. 

Posted by

 Mike Carlier  Lakeville, MN

 

612-916-3033

 

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Rainmaker
2,435,791
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

This goes back and forth and you can see it if you live long enough. The question remains...who does this and why? In the 1950's, one bought a home and stayed in it while paying it off and in the end, it became a natural rent free situation

Aug 19, 2014 12:06 AM #1
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Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

Disappointing to learn that many of the housing starts were apartment buildings.  

Aug 19, 2014 09:13 AM #2
Rainmaker
3,978,945
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I put very little value in the stats.  They are old for what we need most of the time anyways.

Aug 19, 2014 09:26 AM #3
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Rainmaker
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Mike Carlier

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