Thursday, January 22, 2009
Housing starts have truly collapsed. I've been thinking we were getting very close to the bottom in residential construction, and while the December numbers show no signs yet of a bottom, the level of starts is now so low that its relevance for the health of the larger economy is fading fast. Residential construction is now at its lowest point relative to the economy (about 3%) since data were first collected. The next big story out of the housing market will not be one of weakness, but of renewed strength. That might still take several months, but we're closing in on that point fast.
Posted by Scott Grannis at 10:31 AM