The home-building industry has to recover for the economy to recover. Credit was squeezed quite a lot with the financial industry's problems and that certainly contributed to the decrease in housing activity.
Keep this in mind, though, when you hear and read about the future of our economy:
Housing starts should be in the 1.4 million range (based on the population of 300 million growing at 1.1% per year) and that seems reasonable.
In 2005 we were building 2.5 million homes (new home starts) every year - absolutely UNSUSTAINABLE - and therefore, the housing crash also was inevitable.
But, today, housing starts are at 380,000 - way TOO LOW and also UNSUSTAINABLE. The pendulum swings both ways.
An Introduction
Hi. Welcome to BourGroup and my blog. Phil
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.