Although 2011 was among the slowest years ever for single-family construction starts, observers say builders across the country are preparing to commence work on new developments.
The National Association of Home Builders’ Chief Economist David Crowe says 2011 starts came in around 425,000, down from the previous low of 442,000 in 2009, with declines in consumer confidence helping to pinch the number of groundbreakings. According to Census data, single-family homes account for just 2.3 percent of the 9 percent increase in starts in November.
Meritage Homes CEO Steve Hilton does not expect construction activity to return to 2005 and 2006 levels, but he does expect a pick-up this year and for starts to reach 800,000 to 1 million during the next few years. The company will break ground on homes in Tampa in the first quarter, moving to the Sunshine State to take advantage of what Hilton expects will be one of the strongest housing markets in the coming years.
Meanwhile, Toll Bros. is setting its sights on Dallas, Houston, and the Washington, D.C., to Boston corridor, hoping to capitalize on pent-up demand as consumer confidence rises. Other builders ramping up production include Lennar, focusing on the Pacific Northwest; and Pulte Group, which plans projects in northern Virginia, Texas, and the Carolinas.
Zelman & Associates CEO Ivy Zelman says builders must compete with a glut of existing homes; and they are pulling back on square footage, options, and upgrades to make their offerings more affordable. She says an increase in household formation, a low supply of new homes, more tenants seeking to buy as rents rise, stabilizing home prices, and investors looking to buy single-family homes to rent out have combined to give a boost to the new-home market.
The author of this article is: realtormag.realtor.org
See the original post at: http://realtormag.realtor.org/daily-news/2012/01/12/builders-prepare-work-new-developments-in-2012
At GayRealEstate.com, we keep you updated with all the gay realtor, lesbian realtor, gay realty, gay real estate and general real estate news affecting the LGBT community coast to coast, and in your neighborhood.
Click here for list of gay realtors, lesbian realtors and gay friendly realtors Nationwide.
If you have a real estate story that you’d like to share with us with the gay and lesbian real estate community, please contact us at: manager@gayrealestate.com
