Hearty Housing

April housing starts came in at 891,000, down 29.7% Y-o-Y and a level last consistently seen in 2013, but through April starts are up 3.7% YTD. Starts will probably be down Y-o-Y for the next four or five months but low inventories and forbearance limit supply, while favorable Millennial demographics and low interest rates boost demand. Lastly, job losses from Covid-19 have hit lower-income workers hardest, and they typically rent.