This isn’t Barbara Tuchman’s class novel about the horrors of World War I, but the ongoing horrors of Bidenomics with its guns pointed at the American middle class.
Privately‐owned housing starts in August were at a seasonally adjusted annual rate of 1,283,000. This is 11.3 percent below the revised July estimate of 1,447,000 and is 14.8 percent below the August 2022 rate of 1,505,000.
Single‐family housing starts in August were at a rate of 941,000; this is 4.3 percent below the revised July figure of 983,000. The August rate for units in buildings with five units or more was 334,000. This leaves Starts (SAAR) at their lowest since June 2020 and Permits (SAAR) at their highest since Oct 2022…
Source: Bloomberg
Under the hood, multi-family rental starts plunged by the most since June 2020 while single-family permits rose for the 8th straight month…
Source: Bloomberg
For context…
Finally, if sentiment among homebuilders is collapsing again, why are they loading up on permits?
Source: Bloomberg
Source: Bloomberg
And why is construction employment still holding near its highs…
Source: Bloomberg
Will The Fed see permits soaring as homebuilders betting on their dovishness and step in tomorrow to curb-stop that optimism?
The Guns of August … Bidenomics’ guns pointed at the American middle class.
