Kevin Spires, CFA, FRM
The Census Bureau released its April Home Construction report this morning. Housing Starts rose by 2.6% to 717k from an upwardly revised 699k in March. Housing Permits dropped by 7% to 715k from 769k - bring Starts and Permits back into line. The historical ratio from 1962 is a bit more that 105 starts for every 100 permits.
The Housing Recovery has barely begun, but the first four months of 2012 have starts up 24% versus the same four months last year. The Housing Recovery has turned into quite the tailwind for the economy. It would take 7% real growth in housing over the next 9 years to return home construction to its historical rate. Housing will support GDP growth for the next decade - a 180 degree turnaround from the 2006-2010 time period.
The Housing Recovery has barely begun, but the first four months of 2012 have starts up 24% versus the same four months last year. The Housing Recovery has turned into quite the tailwind for the economy. It would take 7% real growth in housing over the next 9 years to return home construction to its historical rate. Housing will support GDP growth for the next decade - a 180 degree turnaround from the 2006-2010 time period.
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