DeLong Smackdown Watch: "The Economy Won't Be Fixed Until the Housing Market Is Fixed" Is Backwards
Fiscal Policy and Governance: "No, No, No! First Loot, Then Burn..." Revisited

Yes, Virginia, Our Housing Stock Is Now Way, Way Below Trend...

Privately Owned Housing Starts 1 Unit Structures Thousands SAAR 1

Privately Owned Housing Starts 1 Unit Structures Thousands SAAR 3

Privately Owned Housing Starts 1 Unit Structures Thousands SAAR 4

On a one-unit houses metric, the bust is now more than three times the size of the boom--and will be at least five times the size of the boom by the time we recover.

The boom was 4 years x 500,000 houses x 1/2 = +1,000,000 excess houses.

The bust so far is -3,500,000 houses.

And it will be -5,000,000 houses--or more--by the time we are finished with this episode...

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