Article source: ConstructConnect
If stagflation is to occur (i.e., a period of no or slow growth accompanied by high inflation), as is being projected by many prognosticators, one of its accompanying features will be a moderation in new homebuilding activity. Neither in the United States nor in Canada has such a turn of events become evident just yet. The canary installed in stagflation’s mine shaft to warn, through an interruption in its backing vocals, of possible serious economic troubles ahead, has not yet ceased its chirping.
U.S. housing starts in April at 1.724 million units, seasonally adjusted and annualized (SAAR), were little different from March’s figure of 1.728 million units. Also, they were down only slightly from the highest monthly number in more than a decade, February’s 1.777 million units.
Furthermore, residential building permits are still running ahead of starts. The permits number nationally in April was 1.819 million units SAAR. Permits have lain between 1.8 million and 1.9 million units (SAAR) for five months in a row.
