After Housing Bust, Rentals Predominate, But Single-Family Units Will Pick Up Gradually
After the harsh winter, the housing sector has had a sluggish recovery. Housing starts did finally increase nicely in April. Yet some analysts scoff, noting that the recent starts gains have been driven by multi-family projects, almost all rentals, not more economically desirable owner-occupied single-family homes. In essence, they are repeating the “McJobs” argument that we lost high-paying quality jobs in the recession and gained predominately low-paying ones in the recovery. That mantra has cropped up in every cycle for five decades, and it has been wrong every time. It is wrong for housing this time too.