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MOSLER'S LAW: There is no financial crisis so deep that a sufficiently large tax cut or spending increase cannot deal with it.

50 years of housing starts

Posted by WARREN MOSLER on April 30th, 2009

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The population was just over 200 million in 1970 vs 300 million today.

We went off the gold standard internationally in 1971 as housing took off to population adjusted highs that have drifted ever lower since.

Housing is in for a large percentage gain from current levels just to get back to levels modest by historical standards.


One Response to “50 years of housing starts”

  1. Paul Palmer Says:

    Not so sure historical measures are valid here. Housing stock has more than doubled since 1970 (I have 1970 stock at 63.445M, US Census Bureau) but population only up 50%. Thus we are down from 3.2 people per house in 1970 down to only 2.4 people per house now. I think it’s more demographically powered – 70′s housing growth was boomers buying first house, 90′s-00′s boom was their kids buying – and their grandpartents not dying off.

    More interesting to me is how housing starts didn’t drop nearly so much in the 2001 recession as previous. I think the same is true with car production(?). Both industries paying the piper now for not cutting back enough then (perhaps – hypothesis).


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