New Housing Starts Increase
In a welcome sign of continued housing expansion, new housing starts increased 8.3 per cent in June. We are in a long-term housing shortage that may last several years. The reasons are multi-fold:
- Boomerang Buyers are Back – The former homeowners who lost their homes in the financial crisis have worked through their credit problems and still want to be homeowners.
- Millennials – They are leaving their parent’s basement, working through their student loans, and want to buy.
- Increased population – immigration and population growth for a country of 320 million people creates natural demand
- Delayed new home construction. We need 16 million additional homes in the next 10 years just to keep up with the population growth. That is 1.5 millions homes per year. We are building less than 1 million homes per year
- People are living longer. That natural creation of available housing (commonly referred to as DEATH), is being delayed as people live longer. Hence, fewer available homes
So the news about new construction is a good thing.
http://abcnews.go.com/Business/wireStory/us-housin…
Vince
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