Housing Starts Slide to Record Low

February 19, 2009 11:30am by Barry Ritholtz

I’ve been meaning to get to this: Housing starts freefell earlier this week, plummeting 16.8% month-over-month to an annualized rate of 466K units.

Multi-family units were down 28% to a 16-year low at 119K; Single-family starts were down 12% M/M to a new historic low of 347K. This marks the third straight month of new lows in single-family construction.

Building is now running below underlying demand of ~500K/month, but the sector is still plagued with a significant inventory overhang of +1 million units.

Of course, ongoing layoffs, stagnant incomes, and an ongoing recession does not bode well for Home Builders over the next 18 months. There may be a few short term trades here and there — but they are just trades.

As to starts, now THATS an ugly chart:

Hat tip RM, via Census

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment. The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client. References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. The Compound Media, Inc., an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers Please see disclosures here: https://ritholtzwealth.com/blog-disclosures/

twitter

facebook