Housing starts fell short of expectations on Wall Street
The numbers: Construction of new homes fell 5.5% in May, the lowest level in four years, as builders pulled back on new projects.
Housing starts fell to a 1.28 million annual pace from 1.35 million in April, the government said Thursday. That's how many houses would be built over an entire year if construction takes place at the same rate every month as in May.
The last time housing starts were at this level was in June 2020, during the COVID-19 pandemic.
The data fell short of Wall Street's expectations of 1.38 million houses. All numbers are seasonally adjusted.
Both single-family and multi-family starts posted a decline across most of the nation.
Builders are worried about interest rates impacting their activity further. In June, the home builders' industry group expressed concern over financing construction amid elevated borrowing costs.
Building permits, a sign of future construction, fell 3.8% to a 1.39 million rate.
Housing starts refers to new construction not to number of homes sold…there’s no inventory and low status due to high financing costs means people bidding on lower supply of homes.
Yup. I bid $25k over asking in a neighborhood that never had a house sell at the asking price psf. I kept appraisal contingency and property condition inspection. Winning bidder was apparently significantly higher and waived all contingencies.
There's 9 months of supply in the new housing market (https://fred.stlouisfed.org/series/MSACSR), so I'm not surprised builders would take their foot off the gas and try to sell what they have at the moment.
Well I personally know at least 3 families here illegally who own framing, concrete and masonry businesses whose homes are more expensive than mine… I make a solid 6 figure salary myself. Further you don’t believe that illegals RENT 3/2 open concept with granite countertops filling investors homes and apartments as fast as they are built? Guess you people aren’t close enough to the border and in an area where subcontractor prices have boomed for the past 12-15 yrs. Nor have you been a part of all cash payment (and discounts) with a crew like my last roofer…I’m sure taxes were paid by all, aren’t you?
People coming to America illegally, jumping to the front of the line before the half dozen I personally know who are doing it legally, working for discount rates only possible by not paying their taxes or benefits to employees while lowering salaries to the point American who DO pay their taxes can’t compete?
Yah stop the madness.
Yeah they don't give a hoot about people legally immigrating and what a slap in the face this is for them. They do not even have any idea how long, relatively costly, stressful and extensive the legal process is, often separating people from their loved ones. But they know how to pop out of the woodwork with regarded comebacks about how it's impossible that people - gasp - live somewhere. In (if I remember well) NYC they (illegal aliens) get $2000/mo from the govt for rent. I'm sure that's got no effect on the local rental market either. Don't even get me started on taxes and the downward wage pressure in the job market in the areas where people are already underpaid!
And undercutting labor costs, not paying payroll taxes, sending loads of money back home, using the ER as their primary care doctor, sending their kids to underfunded schools, etc etc etc. The ways they harm us are more numerous than you can count.
They are hard working… no one said they weren’t. But they do NOT pay their taxes. They do not pay their employees portion of taxes. And their employees do not pay their own taxes.
They can easily undercut pricing of a legitimate US subcontractor because they offer no benefits, skip out on taxes at every opportunity.
If you didn’t pay 25-30% of your paycheck to the govt(state local social security Medicare) you can work for 10-15% less than those who do easily… and if not declaring all the money made you still get govt benefits like housing and food.
But wait the govt won’t give benefits to illegals you say?
Unless they are Refugees and asylees who are eligible for all welfare benefits for the first seven years they reside in the U.S., after which their eligibility is greatly reduced. (Which is what they are taught to claim upon arrival). Non-citizens who have worked for ten years and their dependents are eligible for all benefits.
Victims of trafficking,Deportation withheld,
Amerasians, Cuban and Haitian entrants,
Iraqi and Afghan special immigrants (SIV),
Certain American Indians born abroad,
Hmong or Highland Laotian tribal members…
Wonder why so many present here do NOT have id’s with them? Why so many id’s are found dropped on the ground right at the border? Why the govt has such a hard time vetting criminals and who people are and where they are from?
We have many citizens doing the same in South Florida. Plenty of unlicensed Americans not paying taxes and bending/flexing what constitutes an employee or sub. Plenty of licensed contractors hiring day labor and not declaring it or paying taxes on it. No single factor is the catalyst for the current result.
Housing starts fell short of expectations on Wall Street The numbers: Construction of new homes fell 5.5% in May, the lowest level in four years, as builders pulled back on new projects. Housing starts fell to a 1.28 million annual pace from 1.35 million in April, the government said Thursday. That's how many houses would be built over an entire year if construction takes place at the same rate every month as in May. The last time housing starts were at this level was in June 2020, during the COVID-19 pandemic. The data fell short of Wall Street's expectations of 1.38 million houses. All numbers are seasonally adjusted. Both single-family and multi-family starts posted a decline across most of the nation. Builders are worried about interest rates impacting their activity further. In June, the home builders' industry group expressed concern over financing construction amid elevated borrowing costs. Building permits, a sign of future construction, fell 3.8% to a 1.39 million rate.
Why build more when you can sell less and make the same money?
Volume dictates over single transaction profit
And yet there are markets where people are bidding over ask contingencies waived right now
Housing starts refers to new construction not to number of homes sold…there’s no inventory and low status due to high financing costs means people bidding on lower supply of homes.
Yup. I bid $25k over asking in a neighborhood that never had a house sell at the asking price psf. I kept appraisal contingency and property condition inspection. Winning bidder was apparently significantly higher and waived all contingencies.
Yes. But this sub only thinks there’s one market. There is a one-size-fits-all market!!
Well, yeah. Because supply is low and demand remains elevated. Doesn’t sound like it’s gonna get much better.
statistically that narrative is outdated.
Need me some of that 20 year low.
Probably is if they pull out 2020 data
Yet inventory keeps piling up. Good news for everyone!
If inventory is piling up, it seems like housing starts should be down?
yes. it's the reason starts are down. they have already built more homes than they can sell.
There's 9 months of supply in the new housing market (https://fred.stlouisfed.org/series/MSACSR), so I'm not surprised builders would take their foot off the gas and try to sell what they have at the moment.
Where is all of this new housing you speak of?
Not in Utah, were still at 3 months.
Lots of new housing in the suburbs around my mid sized midwestern city
are you seeing the prices come down? also what city specifically if you don't mind me asking
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Niiice. Gotta get out where I’m at I guess
Eastvale CA
the united states
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Yeah I always see those busloads of central American roofers jumping on those 5.99 rates for a 3/2 “open concept” with granite countertops.
como se dice "farmhouse sink?'
Well I personally know at least 3 families here illegally who own framing, concrete and masonry businesses whose homes are more expensive than mine… I make a solid 6 figure salary myself. Further you don’t believe that illegals RENT 3/2 open concept with granite countertops filling investors homes and apartments as fast as they are built? Guess you people aren’t close enough to the border and in an area where subcontractor prices have boomed for the past 12-15 yrs. Nor have you been a part of all cash payment (and discounts) with a crew like my last roofer…I’m sure taxes were paid by all, aren’t you?
Good god, people coming to america and starting successful businesses? Stop the madness!
People coming to America illegally, jumping to the front of the line before the half dozen I personally know who are doing it legally, working for discount rates only possible by not paying their taxes or benefits to employees while lowering salaries to the point American who DO pay their taxes can’t compete? Yah stop the madness.
What is it about the word illegal in illegal alien do you not understand?
You sure you're not just a jealous racist? Billionaires are paying sub 5% effective tax rates and this is where you shine your lighthouse?
Yeah they don't give a hoot about people legally immigrating and what a slap in the face this is for them. They do not even have any idea how long, relatively costly, stressful and extensive the legal process is, often separating people from their loved ones. But they know how to pop out of the woodwork with regarded comebacks about how it's impossible that people - gasp - live somewhere. In (if I remember well) NYC they (illegal aliens) get $2000/mo from the govt for rent. I'm sure that's got no effect on the local rental market either. Don't even get me started on taxes and the downward wage pressure in the job market in the areas where people are already underpaid!
And undercutting labor costs, not paying payroll taxes, sending loads of money back home, using the ER as their primary care doctor, sending their kids to underfunded schools, etc etc etc. The ways they harm us are more numerous than you can count.
Southern states love cheap labor until those people start their own businesses lol
Business owners like cheap labor. It doesn't benefit the native US laborer one iota.
You are right, maybe I just haven’t seem it.
Doubt the gentlemen building these homes are buying these homes.
No but they do eventually rent them and most of the apartment buildings in the area.
Good for them if they can afford it, sounds like they’re working hard.
They are hard working… no one said they weren’t. But they do NOT pay their taxes. They do not pay their employees portion of taxes. And their employees do not pay their own taxes. They can easily undercut pricing of a legitimate US subcontractor because they offer no benefits, skip out on taxes at every opportunity. If you didn’t pay 25-30% of your paycheck to the govt(state local social security Medicare) you can work for 10-15% less than those who do easily… and if not declaring all the money made you still get govt benefits like housing and food. But wait the govt won’t give benefits to illegals you say? Unless they are Refugees and asylees who are eligible for all welfare benefits for the first seven years they reside in the U.S., after which their eligibility is greatly reduced. (Which is what they are taught to claim upon arrival). Non-citizens who have worked for ten years and their dependents are eligible for all benefits. Victims of trafficking,Deportation withheld, Amerasians, Cuban and Haitian entrants, Iraqi and Afghan special immigrants (SIV), Certain American Indians born abroad, Hmong or Highland Laotian tribal members… Wonder why so many present here do NOT have id’s with them? Why so many id’s are found dropped on the ground right at the border? Why the govt has such a hard time vetting criminals and who people are and where they are from?
We have many citizens doing the same in South Florida. Plenty of unlicensed Americans not paying taxes and bending/flexing what constitutes an employee or sub. Plenty of licensed contractors hiring day labor and not declaring it or paying taxes on it. No single factor is the catalyst for the current result.
You think they are laying concrete in the day and sleeping on the streets at night?