Just before Christmas, the Commerce department released a report which stated US single family home building and permits surged to more than 10 year highs in November. It has taken about 10 years from the collapse of the housing market for the cycle to push up housing prices. According to Lucia Mutikani of Reuters the rate of housing units was 930,000 units.

Builders have struggled to meet demand which is being fueled by labor market near full employment. (one might wonder how an economy which is near full employment will gain a even greater growth, but the President knows) Land and skilled labor have been in short supply and lumber prices are increasing. At the moment, there is a glut in multiple family unit buildings or apartments which means rent increases have slowed.

Linking to dividend paying stocks, two of the biggest companies to consider in the home improvement and building business are Home Depot and Lowe’s, both stocks have registered gains this year. The economy is based on services and consumers spending which means every home owner has to fill up their home. It may be expensive for the average consumer but the overall economy benefits.

There are more questions than answers, till the next time – to raising questions.