Recession Stats - Housing Sector

I prepared the above chart for a presentation in 2008 and updated some of the current stats over the weekend. Housing starts have always been an important indicator in the health of the economy. Many of the factors are positive including a low prime rate with low mortgage rates. An ever increasing population including family formations. Draw your own conclusions but the current recession is depressing housing starts. If my memory serves me correctly, coming out of the '81 recession, we had shortages in materials, labor and lots which created higher prices. I think we will again have material shortages since most manufacturers are cutting back on their inventories and the labor force has left housing construction. And the lot inventory is based on higher land cost which doesn't at all translate into lower prices. My point, real estate is a good investment alternative strategy - today.