I have often said real estate, particularly new hones helps the economy.The statement at the bottom of this article is a good indicator of this.
“Though new homes represent only a fraction of the housing market, they have an outsize impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in tax revenue, according to data from the Home Builders”We have seen for a long time that new housing coming out of the ground has been mostly rentals, so I am not surprised by a decrease in that activity. It is market driven and demand vs supply, Since mortgage lending rules are tighter than the past, I do not expect the number of renters to diminish. I think that is an anomaly and not a trend.
I am pleased to see such a small decrease in new housing starts. I think we have entered a more normal market and it will have some short term fluctuations.
I also belive that technology is changing rapidly and newer homes are incorporating that new technology. In fact I read an article yesterday that a GE appliance division was doing a joint venture with a major 3d supplier Very interesting!!