Home Building Increases Signal Economy Recovery

Great news! Home building is on the rebound at last. In almost every time of economic recovery, the housing market has led the country’s economy out of recession and into recovery, except for the most recent time. That is why it is good news for not just builders and those who work in construction, but also for the economy as a whole, because it signals that the economy may be on an upward swing after several years of upheaval and decrease.

Hope Is Increasing In the Home Building Market

Normally, a little over 1.5 million homes are begun each year. This includes single-family homes, as well as apartment units. When the housing market was at its peak, this number was at more than 2 million to try to keep up with the demand. The last few years, however, an average of less than 600,000 homes were started and, in 2013, the number increased to 900,000. This year, that number is expected to climb to over 1 million, which is a sign of hope in the real estate and construction world.

Even though we are beginning to see good news, it will take a while before it will get back up to the normal range. The housing market collapse was immense, and its effect upon the economy was immense as well. While ups and downs are a normal part of the economic cycle, this event contributed to the entire collapse of the financial market and affected not only our economy, but also economies all over the world. The key is to gradually begin building more homes until you are sure that the demand is there.

Housing Market Recovery Will Be Slow

The recovery from this collapse has already taken five years and it will most likely take several more. Even though the rate of housing construction grew in 2012 and 2013 at double-digit rates, this was largely due to the fact that the numbers were at a very low level to begin with. Recovery seems to be on its way, which is the good news. We are on a course to see great growth in the next two years, due to:

·         Demand from young adults beginning home ownership & from existing homeowners

·         Job growth increases

·         Net worth replenishment, due to increase in home values and revival of stock market

·         Government economic situation more stable

While this is all good news, it is important to note that we are just at the beginning of the upswing. However, it is better to be in the midst of it going up, than at the bottom, which is where most homebuilders were just a few years ago. It may be time to amp up your marketing efforts to connect with more clients who may be thinking about building a home in the near future.

With home construction numbers on the rise, it is important to rethink how you are reaching clients and make plans to reach even more. With the younger adults entering the workforce and beginning families, and existing homeowners beginning to feel better about building, you have the opportunity to grab your ride on the upswing and reach the peak in great condition.