Housing Starts Rate Goes Down. This is a GOOD thing

 

As usual, a decline in housing starts was reported last week as “further evidence of weakness” and a “bleak thing. As we’ve pointed out before, however, supply and demand laws make it clear that when you have an oversupply, as America does now, one of the best things you can do is stop building. From that point of view, I’m disappointed the number of starts isn’t dropping faster. We could really benefit from a few quarters where nothing was started at all!

Here’s an article that makes some good points on this issue.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s