Well, today the news was released on the July Building Permits and Housing Starts from the National Association of Home Builders and the Census Bureau. Nationally building permits and housing starts are down according to these reports.
If we take a closer look at these figures, we can identify the conditions in the Midwest Region. Here is the data for the Midwest region: The Midwest Region’s building permits are down. This is just showing us what we already know, that the housing sector is struggling to gain traction. Our housing starts jumped early this year and are now dropping off.
I predict these numbers will climb in the Twin Cities region and possibly the Midwest, judging by the housing inventory dropping in the Twin Cities. As we get down to 3 to 5 month supply of homes, the building sector will need to kick into to gear to provide more housing. In order for us to get to that 3 to 5 month supply, we need JOBS.
UPDATE: The NAHB President has a video commentary on the national report. Good analysis worth watching.
- NAHB: Builder Confidence Unchanged in August (craigkamman.wordpress.com)
- Housing starts slip 1.5% in July (marketwatch.com)