BEAT: HOUSING STARTS SURGE TO 1,072,000 (Estimated 980,000) http://t.co/KVqG2eIWwA
— BI: Finance (@clusterstock) May 16, 2014
While initially this seems like great news, after all someone has to build those condos and apartment buildings and sell them, and those are jobs. This might be more symptomatic of a larger trend that is showing signs of a renters bubble.
This is bad news not only for middle-income Americans but even more so for the poor and renters. The number of renters now paying upward of 50% of their income for housing has risen by 2.5 million since the recession and 6.7 million over the decade. Roughly one in four renters, notes Harvard, are now in this perilous situation. The number of poor renters is growing, but the supply of new affordable housing has dropped over the past year.Of course though I will take any good news when it comes to the economy no matter how small it appears to be. Please feel free to explain to me why I am wrong about this in the comments section below. Happy Friday.