We’ve been saying for a long time how important the housing industry is to the economy — how every home sold has a major and positive effect on industries far and wide.
Well here’s a great chart that makes that point crystal clear. It shows housing starts vs. the unemployment rate.
Unemployment began to skyrocket around January 2007, peaking about two and a half years later. Since mid-January 2009, though, it’s been going down.
Meanwhile, one-unit housing starts peaked around January 2006, plummeted for about three years, and only started rising again in early 2009 with the rest of the economy.