[Lore]

On the other hand statistically real wages have been flat for the average worker. A raise in the minimum wage actually lifts all boats.

[kublikhan]

But that crash is housing starts you highlight has led to a situation where housing starts have been well below demand for years. This has cleared out most of the glut to the point where inventory levels are below normal and shortages are starting to appear. Housing starts are projected to tick up this year as millennials look to move out of their parent's basement.

Corporate landlords are benefiting from the worst U.S. rental-housing shortage in more than a decade as construction trails demand and more Americans opt to lease rather than buy. There’s an undersupply of single-family houses and apartments to rent for the first time since 2001. The deficit in the third quarter was about 350,000, the most in records dating back 14 years.

While the market for apartments has been in favor of landlords for five years, owners of houses are now able to increase rents and reduce turnover to boost profits. “It’s that supply-demand equation that allows us to get aggressive about raising rents. Three years ago, you would go to raise somebody’s rent and they could say, ‘I’ll go down the street and pay $100 less than I’m paying you now.’ But today they can’t because all those houses down the street are occupied.”

The housing surplus peaked at almost 2 million units, including 1.2 million rentals, in the third quarter of 2009. The surplus of vacant housing has shrunk over the last few years because there has been household growth and limited new construction.” A reviving job market is driving household formation and fueling demand for homes faster than builders are delivering them.

Housing Shortage
“They’re not producing many entry-level homes,” he said in a telephone interview. “That’s what creates housing shortages, and it’s going to drive up the price of rents.”

Investors have positioned themselves to house some of the former owners of 5 million homes lost to foreclosure since the real estate crash. “Many of these kids saw their parents lose their home, and they’re a little bit disillusioned. How long will that last? I don’t know. But today there’s a significant movement to becoming a renter nation as opposed to an owner nation.”

The Big Winner in the Rental Home Shortage: Wall Street

Housing inventory levels are at their lowest levels since 2004. The low housing inventory is actually good news for homeowners thinking of putting their homes on the market now rather than waiting until the spring. Why is this good news for home sellers? Fewer homes on the market mean less competition for your home and more attention from buyers.

Low inventory can be frustrating for buyers and they have had to deal with it for the last three winters. Each winter they have had to deal with multiple offers and some bidding wars. There is nothing a buyer can do to create more inventory.

Housing Inventory at an 11-Year Low

“Difficulties facing the housing recovery include continued low inventory levels and stiff mortgage qualification standards.”

This year ought to be much more friendly for buyers in general, after years in which sellers were in the driver’s seat in most markets. More inventory from both previously sidelined sellers and new construction, slowing price gains and continued low mortgage rates will all contribute to buyers feeling more comfortable this year than in previous years.”

Home Price Growth Slows

[radon1]

http://www.zerohedge.com/news/2015-02-1 ... -back-cnbc

This Man Will Never Be Invited Back On CNBC (video)

"There is no acceleration in underlying economic activity," and

"There's this wrong concept that I keep on hearing about in the financial press about the acceleration in economic growth... It's not happening!"

A stunned Simon Hobbs rebuffs, "That's a long list of non-ideal situations we find ourselves in," to which Ricchiuto snaps back "and we can keep on going!"

"After a string of dismal data on durable goods, retail spending, and inventories, we get a good jobs number and everyone saying the economy's good - it's not good!"