Housing Forecast, 2017
What’s the Basic Summary?
∙ January ‘Housing Starts’ (When a house starts being built) is Up 10.5% from January 2016
∙ Combined Permit Issuance Up 4.6% from January 2016
∙ Homebuilding Professionals are Optimistic
The U.S. economy is complex and difficult to predict. Since the economic crisis of 2007 homebuilding activity has been a leader in the recovery as the primary driver of economic growth. Recent indicators show homebuilders feeling optimistic and confident about the future.
On Q Financial, Inc., VP-Builder Development, Donna Timmerman, has years of experience and industry knowledge in working with homebuilders. She has offered her thoughts regarding the homebuilding industry.
Homebuilding Construction Outlook
“It’s good to see homebuilders having a more positive outlook on future projects” Donna noted when asked about homebuilding. “There are several challenges to overcome, but we can expect at least some growth throughout 2017.”
Asked for details about those challenges, Donna continued, “Shortage of skilled labor continues to be a problem, due to many individuals that were forced to move to another state or another occupation to provide for their family.”
Continuing, Donna said: “Land prices in many areas have gotten more expensive due to shortage of suitable lots, which drives up builders’ cost. However due to low inventory, the demand may apply upward pressure on pricing, which will help builders remain competitive and profitable.
Offering a broad look at the overall scene in her conclusion, Donna went on to posit that, “… a new administration, consumer confidence, job growth and other factors have created greater housing demand. Expect homebuilders to meet this demand by contributing to the supply wherever they can.” This is to say, there will likely be plenty of jobs related to homebuilding to go around, provided demand remains high.