Category Archives: housing

Follow up on Housing Permits and Housing Starts: Do Permits “Predict”

In an earlier post on investment, I made the assertion that housing permits led housing starts. This assertion was contested by a number of observers (GWG, rana, spencer, CalculatedRisk). I’ve decided to revisit this question, since clearly, the best characterization of the stylized facts takes on heightened importance given the yesterday’s release, as discussed by Bloomberg:

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