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The Bull Market in U.S. Housing Continues

Editor's Note: Below is an excerpt from today's Early Look written by Hedgeye U.S. Macro analyst Christian Drake. Click here to learn more about the Early Look.

The Bull Market in U.S. Housing Continues - for sale sign image
Source: Mark Moz

June Housing Starts data shows that the US Housing sector remains very much in an ongoing bull market.

Total Housing Starts in June rebounded, rising +11.2% sequentially against unrevised May estimates (June was +8.3% M/M against the +2.7% positive revision to May).    Single-family Starts activity – which continues to rise and buttress the headline alongside ongoing deceleration in MF activity – was up +6.3% sequentially and accelerated to +10.3% Y/Y.  At the current +849K we’ve moved back to the highs of the cycle.  

The annotated long-cycle view of New Construction activity can be seen in the Chart of the Day below.

Conclusion: Demand is strong, supply remains tight and prices are accelerating. 

The Bull Market in U.S. Housing Continues - CoD Starts