Real Estate Out of Whack (Patreon)

Housing starts are a measure of new residential construction and are considered a key economic indicator.  

you can clearly notice a few things:

1) out of whack - supply constraints have lengthened the time from start to completion. We can see the impact of supply constraints by looking at the gap between single-family starts and completions. It usually only takes about 6 months between starting a single-family home and completion, but it has taken longer during the pandemic.

2) when the #Starts dip it typically precedes a recession by 6 mths

3) for those real estate snipers - in construction time is money. the longer a project takes the more money it costs and builders often run out of money.  The message here is - 3 mths from now maybe a great time to snipe an incomplete property - if you have the capability or network to finish it yourself. But rem the devil is in the finishing details. 

4) I am sure this pattern is all over the world not just the US.