HMI Not The Only Number That’s Up, But It’s Still Not Enough

This blog reported on Friday that the Housing Market Index beat estimates in July, and is near a record high. The U.S. Commerce Department also released data that both housing starts and building permits are substantially up  year-over-year. However, with Millennials finally entering the race, the pressure on supply is strong. We need about 1.5 million new units of housing per year, in order to balance the supply and demand curves, and at a seasonally adjusted 1.174 million, we’re still about 22% behind where we need to be.

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