Following April’s hope-filled spike in Housing Starts and Building Permits SAAR (and the exuberant jerk to 10 year highs in NAHB Sentiment), May data is more mixed. Housing Starts plunged 11.1% MoM (against expectations of a 4% drop) missing for the 3rd of last 4 months. Permits, on the other hand, spiked 11.8% (againmst expectations of a 3.5% drop) smashing the hope to its highest since August 2007. So – in summary – hope is soaring, reality is falling and all the hope is based on America as ‘rental nation’ with a record number of multi-family unit permits.
If it wasn’t clear to everyone that the “old normal” American Dream of buying and owning a house is now dead and buried, then today’s just announced housing starts and permits data put the last nail in that particular coffin, because as we noted earlier while single-family housing starts dropped once again, this time to a level last seen in October, the real story was in housing permits. But not single-family permits: multi-family ones, aka rental buildings, just had the biggest monthly surge since June 2008, jumping 26% in one month, and a whopping 54% from a year ago!
Full Story @ [Zero Hedge]