The Oldest and Most Trusted Real Estate News Magazine

National Economic Outlook (February 2013)

National Economic Outlook (February 2013)

Home construction rarely matches the actual demand for new homes, which can change quickly – there’s often too much or too little. Because the US population grows one percent per year about 1.5 million new homes are needed every year. During the boom of the mid-2000s, two million homes were built per year; at the bottom of the bust, that number was 600,000.

In 2012, construction was up to 800,000 homes. This is a clear indicator that demand is even higher and will continue higher for years. Home prices will be rising even when more construction takes place. The economic effect is self-reinforcing because most of the cost of building a new home is in the wages paid to the workers, who in turn can afford a better home for themselves or spend money on cars and other stuff.


Read the rest of National Economic Outlook (February 2013) »

For more articles like this, please visit our Real Estate Investing Blog.


© 2013 by Marco Santarelli and Norada Real Estate Investments.
Your Premier Source for Turnkey Investment Property.

Tags: , , , , ,

Sitemap Madbadcat Graphics