Tuesday, September 1, 2009

Another Housing Bubble Indicator

Not that we need more proof that there was a housing bubble, but I found this interesting.

In the Census' latest release of housing starts, they detail the number of multi-unit buildings that were started, broken out by rentals vs. ownership (i.e. for simplicity lets call them apartments vs. condos). Not surprising, more units were built as condos than in recent years (heck, in a number of areas it became easier to own than rent). But in hindsight, the level of increase was awfully telling.

More than 50% of all multi-unit buildings built in Q2 2005 were for ownership, up from the 20% level that had been the norm from 1993-2003. Hate to say it, but these owners are back to what they probably should have been all along... renting.

Source: Census