UNITED STATES – In the era of Bidenflation and supply chain issues, statistics show that new residential construction dropped significantly in January 2022.
According to a report from the U.S. Census Bureau and the U.S. Department of Housing and Urban Development:
“Single-family housing starts in January were at a rate of 1,116,000; this is 5.6 percent (±12.0 percent)* below the revised December figure of 1,182,000.”
The numbers dropped also for privately-owned housing starts. The report notes:
“Privately-owned housing starts in January were at a seasonally adjusted annual rate of 1,638,000.
“This is 4.1 percent (±13.7 percent)* below the revised December estimate of 1,708,000, but is 0.8 percent (±12.5 percent)* above the January 2021 rate of 1,625,000.”
Housing completions were also down considerably compared to December 2021, as well compared to a year ago:
“Privately-owned housing completions in January were at a seasonally adjusted annual rate of 1,246,000.
“This is 5.2 percent (±8.0 percent)* below the revised December estimate of 1,315,000 and is 6.2 percent (±10.0 percent)* below the January 2021 rate of 1,328,000.”
For single family units, the drop was even more significant:
“Single-family housing completions in January were at a rate of 927,000; this is 7.3 percent (±6.8 percent) below the revised December rate of 1,000,000.”
Also according to the report, the rate for multifamily construction starts fell to 510,000, which Breitbart has determined to represent a drop of 2.1 percent below the rate in December.
Breitbart also notes in a recent analysis that inflation has hit the home construction industry hard. The publication reports that, according to the Department of Labor’s Producer Price Index, costs for construction equipment has increased by 11.4 percent compared to last January.
Skyrocketing prices for materials and widespread shortages are behind the surprise decline in building activity in January. https://t.co/lwqWvV9RTv
— Breitbart News (@BreitbartNews) February 19, 2022
In addition, Breitbart notes:
“Softwood lumber prices are up 20.1 percent over the past 12 months.
“The index that tracks nails is up a striking 44 percent.
“Plumbing fixtures are up 7.4 percent.
“Bolts, nuts, screws, and rivets are up 16.5 percent.
“Air conditioning is up 18.7 percent.”
The softwood lumber price increases have certainly left their mark. CNBC reports that lumber costs did fall from a record high in May of 2021, but then in December 2021, they began increasing again. The cost is now “about three times their average pre-pandemic price.”
According to an estimate by the National Association of Home Builders, increasing lumber prices have caused an $18,600 increase in the cost of a new home, and a $7300 increase in the cost of a new multifamily home.
The soaring price of lumber is increasing the cost of a new home by almost $19,000, CNBC reported Tuesday.https://t.co/BbJgu2GqUa
— Newsmax (@newsmax) February 15, 2022
CNBC also reports that homebuilder confidence has fallen due to worsening “[s]upply chain issues.”
The outlet states:
“Builder confidence in the single-family, newly built housing market fell 1 point in February to 82 on the National Association of Home Builders/Wells Fargo Housing Market Index.
“That is the second straight month of declines. Anything above 50 is considered positive. The index stood at 84 in February 2021.”
National Association of Home Builders (NAHB) Chairman Jerry Konter told CNBC:
“Production disruptions are so severe that many builders are waiting months to receive cabinets, garage doors, countertops and appliances.”
“These delivery delays are raising construction costs and pricing prospective buyers out of the market.”
Prospective buyers are also grappling with increased interest rates.
CNBC reports that the average rate on a 30-year mortgage just topped 4 percent, over a full percentage point higher than last year at this time. Higher rates mean that buyers, already facing increased costs due to building supply issues, may be even more likely to be priced out of the market.
Robert Dietz, chief economist for NAHB, told CNBC:
“Residential construction costs are up 21% on a year over year basis, and these higher development costs have hit first-time buyers particularly hard.”
“Higher interest rates in 2022 will further reduce housing affordability even as demand remains solid due to a lack of resale inventory.”
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“Bidenflation” destroying consumer confidence, drops it to ‘stunning’ 10-year low
Originally published February 17, 2022
The editorial comments in this article are brought to you by a United States veteran and current staff writer for Law Enforcement Today.
ANN ARBOR, MI – The University of Michigan recently released their monthly report measuring consumer confidence.
The initial February rankings dropped to 61.7, a five and one-half point drop from the January. Economists were anticipating the number to remain relatively close to last month’s survey findings.
The 61.7 is the lowest number recorded by the UM survey since October 2011, less than 3 years into Obama’s first term. It was nearly 20 points down from the same time last year.
“The component of the index that measures consumers’ views of current conditions dropped to 68.5 in February from 72 in January. The gauge of expectations fell to 57.4 from 64.1.”
All of these numbers come in the midst of the highest level of inflation 40 years.
And it all points to a “sustained downturn in consumer spending.”
“The depth of the slump, however, is subject to several caveats that have not been present in prior downturns: the impact of unspent stimulus funds, the partisan distortion of expectations, and the pandemic’s disruption of spending and work patterns,” chief economist of the survey Richard Curtin said.
Wait, you mean government lockdowns and other pandemic policies have had an impact on Americans and their financial stability?
And politicians are playing a partisan game? Makes you wonder if the media is also playing a part.
Looks like they are.
In a Valentine’s Day 2022 article, the AP’s Josh Boak wrote an article discussing inflation and voter confidence. The opening statement read:
“President Joe Biden came into office with a plan to fix inflation — just not the particular inflationary problem that the country now faces.”
Exactly which inflation crisis he was planning to fix is unclear.
When Biden took office, the inflation rate was at 1.4%, which was 1.1% lower than Trump inherited when he took office.
In fact, over the last 12 months of Trump’s economic policy, the inflation rate averaged 1.14%. Over the first 12 months of Biden’s administration, the average has been 5.2%.
Both of those years saw a President trying to navigate our nation through a pandemic.
Yet, somehow Biden, Pelosi and the rest of the Democrat party is busy trying to convince the American people that their strategies are in our best interests. The truth is, since 2000, no president has averaged more inflation growth over any 12-month span of their administration than Joe Biden.
Under the current administration, it has gone up 5.33%. The previous four administrations worst 12-month average, in descending order from Trump to Clinton (Clinton’s final 12 months), averaged 2.45%, 3.3%, 3.8% and 3.5%.
Biden and team have also created the largest 1-year average increase from what they inherited. In fact, the breakdowns since Clinton left office until today look like this by presidential administration:
George W. Bush inherited 3.7% but left Obama 0% growth. Obama in turn took that and left Trump 2.5%. Trump policies, both foreign and domestic, reduced the hand-off by 1.1%.
But what does all this mean to the American consumer? The buying power of the dollar has been impacted tremendously.
Assuming that the average inflation during Biden’s four years in office remained the same, it would cost an additional $205.19 per $1000 spent to purchase the same things being purchased before he took office.
A $30,000 vehicle purchased in 2020, would cost $36,155 in 2024. Assuming a 5% interest rate on a 5-year auto loan and 5% sales tax, that 2020 purchase would total $36,526 and a monthly payment of $507.
Biden’s failed economics would cost the American consumer $101 more per month and a total of $7,305 over the life of the loan.
So, while the White House claims that Biden’s economic plan is working and celebrates the fact that a 4th of July Cookout was down $0.16 from the previous year, the average American is not feeling overly festive at the moment.
Planning a cookout this year? Ketchup on the news. According to the Farm Bureau, the cost of a 4th of July BBQ is down from last year. It’s a fact you must-hear(d). Hot dog, the Biden economic plan is working. And that’s something we can all relish. pic.twitter.com/7h9qLauIbC
— The White House (@WhiteHouse) July 1, 2021
So, how do we stop this rapid ascent we currently find ourselves in?
That answer is simple.
Stop voting for progressives that believe the government has the ability to simply print more money and then just give it away. Stop voting for individuals that believe things like Build Back Better work.
These particular politicians believe that they can simply conjure up trillions of dollars in government spending, claim that no one will have a tax increase (except for those who make more than $400,000), and that it is completely funded.
These are merely empty talking points. The reality is progressives are treating the Federal Reserve as their personal ATM and running under the assumption that it has unlimited funds available for withdrawal.
And Joe Biden is plugging away at enabling this spending spree. But hey, at least there are no more mean tweets.
Inflation under Biden making breakfast, lunch, dinner, cars, houses, oil and basically everything way more expensive
WASHINGTON, DC – In 1992, James Carville was advising former Democratic Bill Clinton on how he could win the Presidency.
Carville noted that the economy then was the way to win the race and noted, “it’s the economy, stupid.”
Those words helped get Clinton elected and may be the words that get Biden out of office with his policies that many argue have led to uncontrolled inflation.
Biden now has an Inflation of 6.8%
The HIGHEST in 40yrs….
Let’s Go Brandon🤦🏼♂️
— Graham Allen (@GrahamAllen_1) December 10, 2021
People across the country have realized the cost of democrat policies even if they do not realize it.
Those policies have led to the highest inflation rate in 39 years and have caused the price of gas and everything else to skyrocket, including the cost of eating the most important meal of the day, breakfast.
White House Press Secretary Jen Psaki spins President Biden's inflation crisis, overlooking the data. pic.twitter.com/HHFmfgd372
— Newsmax (@newsmax) December 11, 2021
Prices of almost every breakfast food have shot up compared to the same time frame last year.
The Department of Labor reported on December 10th showed the food at home inflation index had risen 6.4 percent and gained a half of a percentage point in November of this year.
Food types like cereal (3.3 percent), milk (6.6 percent), bacon (21 percent), and sausage (12.9 percent) have risen substantially compared to the same time last year. Nearly every food category has risen which is making it difficult for families, who are still reeling from the lock downs last year, able to keep up.
Food is not the only category that has seen a substantial increase in inflation over the course of the last year, but pricing of new and used vehicles have also increased.
Prices of new cars and trucks increased an adjusted 1.4 percent according to the Department of Labor’s Consumer Price Index. Overall, according to the report, prices have increased 11.1 percent which is the fastest inflation pace for vehicles since 1975.
“Consumer prices in November rose 6.8% in the last 12 months, the most since 1982. This should be all the warning Democrat doubters need to shelve President Biden’s Build Back Batter Act that could fuel more inflation”- Wall Street Journal https://t.co/ymIP4TN9A1
— Mike Pence (@Mike_Pence) December 11, 2021
The Consumer Price Index has also risen a total of 6.8 percent in November which is the highest rate of inflation in 39 years.
Prices of good that are separate from food and energy have also risen 9.4 percent while the prices on durable goods have increased 14.9 percent which is the fastest level of inflation since at least 1957.
Prices for used cars are inflating faster and has seen an increase of 2.6 percent in November alone, making the yearly increase at 31.4 percent since this time last year.
Inflation prices pushed used vehicle prices up 45 percent which is the highest gain since 1975. Pricing has been showing increases of over 20 percent for seven months consecutively which is the longest span on record.
When inflation hit used car pricing during the spring, Jerome Powell, Democratic President Joe Biden’s Federal Reserve Chair, joined with other members of the Biden Administration in saying that inflation would be short-lived.
When there was a decline in used car prices in August, Powell was quick to jump up with an ‘I told you so.’
During a speech at the Kansas City Fed’s monetary policy conference, Powell said:
“Use car prices, for example, appear to have stabilized; indeed, some price indicators are beginning to fall. If that continues, as many analysts predict, then used car prices will soon be pulling measured inflation down, as they did for much of the past decade.”
However, the dip in inflation in August did not maintain and the prices have once again continued to rise. Recent reports show that there was a decline in August and September, but since then prices rose 2.5 percent since October.
It is unknown whether the rise of inflation will continue but odds are they will with the policies set in place by the Biden administration.
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