> Warren Buffett Blog: Warren Buffett surprised by slow home construction numbers

Tuesday, October 7, 2014

Warren Buffett surprised by slow home construction numbers

You would think that people would be lining up now to get mortgages to buy a home. It’s a good way to go short the dollar, short interest rates. It is a no-brainer. But so far home construction pickup has been slower than I had anticipated.

Household formation falls off dramatically in a recession, at least initially, but that doesn’t last long. Hormones kick in and in-laws get tiresome, too.