The Globe and Mail reports in its Friday edition that the U.S. housing market, historically a major engine of economic growth south of the border, is stuck in a deep freeze. The Globe's Jason Kirby writes that at the same time, the U.S. economy just clocked its fastest growth in a year last quarter. The disconnect between high-level economic indicators and the everyday reality for U.S. households explains a lot about this week's stunning midterm election results. While U.S. Bureau of Economic Analysis numbers released last week showed growth in the third quarter was powered by investment -- in particular the supercharged artificial-intelligence build-out -- the housing sector is waving multiple red flags. Housing starts plunged sharply in September, extending a weakening trend that has been under way for several years. At the same time the Housing Market Index, a gauge of home builder sentiment, fell to its lowest level in nearly 15 years. The Trump administration's mass deportations have only made the job of finding plumbers, roofers and electricians more difficult. Tariffs on many of the materials that go into new homes, such as copper, aluminum and lumber, have made them more costly, while prices remain high.
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