Wow, The Economy is Hot – U.S. Housing Starts Jump 16.9% in December, 1.608 Million Units…

Jumpin’ ju-ju bones this is the best recession ever!  The Commerce Department announces U.S. housing starts in December jumped a whopping 16.9 percent in December with 1.608 million units.  Blowing away forecast expectation of 1.375 million units; with the largest gain since 2006.

Cross referencing the latest median wage report from the Bureau of Labor Statistics [Table 4] shows that average wages in the construction sector in the fourth quarter increased 9.3%.  There’s obviously a lot of demand for workers in the construction industry.

WASHINGTON (Reuters) – U.S. homebuilding surged to a 13-year high in December as activity increased across the board, suggesting the housing market recovery was back on track amid low mortgage rates, and could help support the longest economic expansion on record.

There was also some encouraging news on manufacturing, with other data on Friday showing production at factories increasing for a second straight month in December.

[…] “The shockingly large rise in home construction is likely to provide an unexpected boost to growth,” said Joel Naroff, chief economist at Naroff Economic Advisors in Holland, Pennsylvania.

Housing starts jumped 16.9% to a seasonally adjusted annual rate of 1.608 million units last month, the highest level since December 2006. The percentage gain was the largest since October 2016. Groundbreaking activity last month was likely flattered by unseasonably mild weather and probably overstates the health of the housing market.

Data for November was revised higher to show homebuilding rising to a pace of 1.375 million units, instead of advancing to a rate of 1.365 million units as previously reported.

Economists polled by Reuters had forecast housing starts would increase to a pace of 1.375 million units in December. (read more)

One of the excellent details within the latest data is the single family home growth and specifically the regions with the largest gains.  Remember, MAGAnomics is the reversal of prior economic policy that was destroying the mid-west and upper-mid-west manufacturing centers (creating the rust belt).

(Via CNBC) Single-family homebuilding, which accounts for the largest share of the housing market, jumped 11.2% to a rate of 1.055 units in December, the highest level since June 2007. Single-family housing starts rose in the Midwest and the populous South. They, however, fell in the Northeast and West. (more)

A genuine MAGAnomic revitalization of the exact areas that were most impacted by the loss of manufacturing jobs driven to Asia.  This news is WINNING!

Home ownership is a big decision…. a decision at the heart of the middle-class American family.  These purchases are not made unless workers and families feel confident about their financial and employment stability.  Great news all around.

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This entry was posted in Big Government, Donald Trump, Economy, media bias, President Trump, Trade Deal, Uncategorized, US Treasury, USA. Bookmark the permalink.

77 Responses to Wow, The Economy is Hot – U.S. Housing Starts Jump 16.9% in December, 1.608 Million Units…

  1. tax2much says:

    The economy is booming. Let’s impeach the guy who made that happen.

    Liked by 13 people

  2. bertdilbert says:

    Why, next will be an explosion in babies as couples see this as the right time to have kids… Count on it.

    Liked by 9 people

  3. Socrates says:

    We must vote him out of office in November and put a progressive democrat in as just think how all these new homes would adversely affect the nations homeless.Act Now!!

    Liked by 4 people

  4. freepetta says:

    Yes!!! Yes!!! Yes!!! The Economy is RED HOT!!

    Liked by 3 people

  5. Dee Paul Deje says:

    Record stock markets, booming economy, higher wages, low inflation, low unemployment, lower taxes, overseas money pouring back in, factories opening, jobs coming back. Winning, winning, winning.
    Every Dem POTUS candidate:“I’ll put a stop to all that.”

    Liked by 6 people

  6. BoreMole says:

    My wife and I are about to buy a vacation home… never really thought that would be possible. Crazy times!

    Liked by 11 people

    • Tiffthis says:

      Congrats BoreMole!

      Liked by 1 person

      • Lester Smith says:

        Ask why impeach when the country is in a up swing. Well maybe because prosperity equals independence. Independence a loss of dependence. CoDependence equals goverment control. Trump is bad for business. Prosperity is keiptnite to governmental control. Orange man must go, he is bad for business.

        Like

        • BigTalkers says:

          Great point!

          Like

        • Judith says:

          NOOOOO! Bring back the downswing! Bring back the HUD rezoning scams and sanctuary cities!

          The *last* thing this country needs is manufacturing, energy independence and jobs that pay a living wage! No more babies! Definitely no more young American families!

          What we need is MORE gubmint dependence .. MORE pharmaceutical pain management ..MORE pressure on scarce resources.. and definitely MORE HUD-zoned, high-density workforce units to house foreign slave laborers at taxpayer expense! What’s all this nonsense about building new SINGLE FAMILY homes?

          Turn those machines back ON!! Turn those machines back ON!! /S

          Liked by 1 person

    • Gadsden says:

      I hit $1,000,000 in equities in November and was super excited…1.5 months later I’m at $1,080,000. 😀 Um, yeah this economy is red hot. At this rate I’ll be fully retired by the time DJT leaves office!

      Liked by 3 people

  7. Vegas Guy says:

    Best recession EVER LOL……..I’m pulling $20 bills outta my pocket every time my hand goes above my waist…..

    Oh…And many thanks Obozo.. his fundamental change policies FINALLY kicked in…./s

    Liked by 6 people

  8. sarasotosfan says:

    I hope there are no problems in the mortgage market.

    Like

  9. Perot Conservative says:

    Whoa!!!!!

    Like

  10. ibobland08 says:

    It’d be nice if they were building houses that were affordable for the average person.

    Like

    • you don’t want housing projects again do you?

      Like

      • ibobland08 says:

        No? I just meant that at least where I live, all they build are huge house that are $300k ad above. Not affordable for a family making $60,000 a year, which is the median family income. The only houses that affordable are those that are very old and probably don’t have many years left in them.

        Liked by 1 person

        • Gadsden says:

          That’s a mortgage payment in the range of $1200 a month, which should be doable on $60,000 a year or approximately $4000 a month after taxes. Hell, my rent was more than that ten years ago when I was making less than $60k.

          Liked by 1 person

    • Guyski says:

      Look for an older livable fixer upper. If you don’t have to have everything new right away should be able to find a deal.

      Liked by 1 person

      • Judith says:

        I agree. There are fixer-uppers are out there to be had for much less.

        I purposely sold my “starter home” for less than appraisal, because I was adament that it go to another young family. I weeded out developers who offer more money to tear it down and build a new McMansion. The young couple cried at the contract signing.

        Priorities.

        I did the same thing with the sale of my parents home. There are many more out there like me. It’s not always about the greedy developers. Can’t take it with you, ya know?

        Like

        • Judith says:

          To be fair, this was during the housing bubble. I just came down to earth, is all, and the shortfall on the sale was offset after my new purchase gained in market value. That’s Karma right there.

          Liked by 1 person

  11. dufrst says:

    We are in the midst of an expansion folks ala Reagan going into his first reelection. All the Dems have is impeachment and more impeachment to try to distract the people, but this economy is like we’ve never seen before!

    There’s no better environment for the consumer and now with the trade deals coming in, there’s no better environment for business. This is a dynamic duo that’s going to supercharge economic growth this year.

    Kudos to our great maestro Trump and Larry Kudlow for further fueling the outlook by talking up a major tax cut in the offing next year. That will only make businesses want to invest more in our country and it will only boost business and consumer confidence more for this year going into next. Winning! Never felt so good! MAGA landslide 2020!

    Liked by 2 people

    • do you think the republicans will let trump cut taxes? last time paul ryan forced trump to increase spending to get a modest tax cut. you remember paul ryan, mr. facts and figures on the debt bomb. the republican party tries to sabotage trump every chance they get.

      Liked by 2 people

    • BoreMole says:

      You can bet the farm on a manipulated market dip as the election approaches. The best part of it will be that, if they fail and he is elected anyway, those globalists will lose many billions more on their gamble.

      Liked by 2 people

      • dallasdan says:

        The “Big Cigars” don’t lose. Any pre-election market retrenchment will be carefully constructed, and large investors will be covered with short positions and options. The average investor will be hurt, and that will be the objective of the decline.

        Like

  12. J says:

    I own a construction company in MI CD-8 about 30 miles west of Detroit. I do mostly residential construction.

    I am taking issue with this comment from the Reuters article: “Groundbreaking activity last month was likely flattered by unseasonably mild weather and probably overstates the health of the housing market.”

    We have basements here in Michigan and my builders were digging holes like mad all thru August, September and October so that they would be able to continue to build full speed all winter regardless of the weather.

    The warm winter weather has had little to do with this uptick. Its purely a demand for housing effect.

    I employed 2 crews of 7 or 8 guys last summer. In 2016 I had one crew of 7 or 8. This summer I will probably need at least 3 and possibly 4 just to catch up on all the outside concrete that we cant do in the winter. Last summer we had homeowners that had moved in in January that still didnt have driveways in July.

    Ive been in business since the late 80s and Ive never seen anything like this. Even the dotcom boom wasnt this crazy. And the best part for my guys and gals the top wage has finally moved up from 20-25 to more like 30-35 and hour. Id been in the 20-25 range since 1992. Experienced laborers are making 20 an hour.

    I have no problem with the Mexicans in the industry. Many are my friends. But there can be no doubt they depressed wages.

    It really is happy times in the construction industry from the builders and developers to the contractors and down to the laborers.

    Liked by 11 people

  13. In the Land of Poz says:

    “Paul? Paul! This is your mother speaking. PAUL KRUGMAN, you get out from under that bed!”

    Liked by 3 people

  14. jmilamdeal says:

    This news must really make the Democrats sad, with the economy going great guns people won’t feel the need so much for government giveaways and they may be able to stand on their own without a lot of help. It could really ruin their plans if this keeps up, with MAGA going great guns who will feel the need for a one world government?

    Liked by 1 person

  15. Got243kids says:

    I love it when Un-genda 21 gets kicked in the teeth. To bad Commirfornia isn’t part of this massive uptick.

    Liked by 3 people

    • StanH says:

      Amen to that. The UN is a globalist boondoggle that has way outlived it’s usefulness.

      Liked by 2 people

    • MILupper says:

      We could have 5-6%+ economic growth easily if the dem controlled states like CA., NY, IL. etc would get on the Trump Train.

      Liked by 1 person

      • Ron Jaeger says:

        I am in Redding Ca. and I bet the Trump effect will really set in and take hold when the agriculture sales internationally start to really take off. Another 2 years looking at the EU and Asia and the new buying agreements Trump has /is negotiating. Then I think a businessman maybe someone like Peter Thiel could lead our state out of commie land with Trump’s help? Once the full effect of Trump’s ag. deals hit home here there will be a momentous surge to back his policies. I was here when Reagan push thru the resistance wall and this will be a huge push back in comparison. MAGA FOLKS !!!

        Like

  16. StanH says:

    He makes it look easy.

    Every person in America will have a job if we don’t impeach that Son-of-a-bitch! /s

    What it tells me the economic agony of the last decade of so was self inflicted. To fully implement NAFTA/GATT/TPP all manufacturing moved out of the USA now you can have a cool job in the Service Industry, “will you have fries with your burger?” The decimation on rural America is criminal. Of course what was Barry said, “he’s not interested in rural America.” We clutch bibles and guns, it’s a good idea for the swamp to never forget that.

    The financial news is what matters, this is awesome. All of the palace intrigues are swamp gas.

    Liked by 2 people

  17. Any thoughts as to what extent this will impact GDP?

    Like

  18. fangdog says:

    Wait until the average worker learns how he can benefit from the Investment Tax Credit (ITC). Trump passed a revised ITC into law and can be used for personal tax-planning. This is a tremendous boon and Trump even said, “Potentially bigger than the tax-cut itself”.

    Like

    • I’m interested! Do you have a link with a succinct explanation? I believe many of my co workers will be interested.

      Like

      • fangdog says:

        I will make it simple in concept :

        The average worker pays $10,000 per year income tax. Say, someone needs a $100,000 piece of equipment. Ten people form an equipment leasing company LLC and buys the equipment. Then Leases the equipment to the one needing the equipment. The LLC keeps the the investment tax credit (ITC). The equipment lease payments going to the LLC can then go into the LLC partners tax deferred retirement programs such as a 401-K.

        At the end of the lease term, the lessee buys the equipment for, lets say a dollar and the lessors now have $100,000 tax deferred.

        The government give us two choices; either you spend your tax-dollars or we spend your tax-dollars. The government encourages tax-planning because it bolsters the economy which creates more taxes for the government.
        As a bonus, you determine how your money is spent rather than Nancy Pelosi and he gang of merry men.. Lol

        Like

        • Judith says:

          Donald Trump made a remark on his campaign stump when chastised for exploiting tax breaks. He essentially said, “Why should I give more of my hard-earned money to a wasteful government? I would rather keep more of my money to spend as I choose.”

          And he is correct. Now, we see the same concept woven into his new tax plan. Brilliant!

          We all know that Donald Trump the billionaire businessman has always had a generous nature toward the less fortunate. I’ve no doubt that his “disposable” income was spent more efficiently than, say, it would have been in pallets of taxpayer cash shipped to Iran.

          Liked by 1 person

  19. Your Tour Guide says:

    Waiting to see how all the building will affect the Mexican laborers
    that are already here. Will they vote to keep a steady paycheck,
    or will they vote against “Orange Man Bad” so they can hang out
    in the labor pools outside Home Depot and Lowe’s? Decisions,
    decisions.

    YTG feels a scouting operation coming on in the next week.
    I’m going to do the Buford Highway cruise, early on a Saturday.
    Won’t happen this weekend. The honey do list is long.

    Buford Highway,( for those not from Atlanta) is a stretch of road
    that goes from Atlanta to Buford. The stretch between Atlanta
    city limits to 285 has about 60 apartment complexes. If you
    drive from Atlanta to 285/ Doraville on a Saturday morning, it
    looks like a hispanic casting call. Literally hundreds of day
    laborers along it at every gas station, convenience store,
    home improvement store along it’s stretch. Unbelievable
    amount of people if you drive the whole stretch.

    If I do the cruise and see far fewer bodies standing around,
    it won’t be because of the immigration policies. It WILL be
    because the labor pool is getting a steady paycheck. And,
    guess who they will tell everyone to vote for?

    Liked by 2 people

    • Your Tour Guide says:

      Oh, left out one little nugget. Heard for years that
      many persons from little villages in Mexico knew only
      two English words.

      “Buford Highway”.

      Liked by 2 people

      • Ron Jaeger says:

        Great news from the “street” !!! I am wondering is this due to new jobs in the area or what exactly is driving the demand west of Detroit? Thanks for your post.Sounds like a prime spot to film an expose for Fox news on illegals and American jobs by someone like Watters.

        Like

  20. Rynn69 says:

    MAGAnomics on FIRE!

    There were two economic indicators I was watching closely when PDJT took the helm:

    1. The average family income
    2. Single family home growth

    To me, these are the best indicators of long-term, sustained growth for Main Street. As Sundance indicated:

    “Home ownership is a big decision…. a decision at the heart of the middle-class American family. These purchases are not made unless workers and families feel confident about their financial and employment stability. Great news all around.”

    I am thrilled for Americans and America! Everyone hardworking American deserves prosperity! MAGA on.

    Like

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