New Construction Numbers Now Versus 2005

Dated: 11/29/2016

Views: 66

New Construction Numbers: Now Versus 2005 | MyKCM

There is some thinking that the pace of the housing recovery is unsustainable and that we may be heading for another housing bubble. However, Jonathan Smoke, the Chief Economist of realtor.com explains the basic difference between 2005 and today:

“The havoc during the last cycle was the result of building too many homes and of speculation fueled by loose credit. That’s the exact opposite of what we have today.”

If we look at the number of new single family housing starts over the last 30 years, we can see that the numbers of housing starts during the current recovery (2012-Today) are still way below historic averages, and are far less than the numbers built during the run-up to the housing bubble (2002-2006).

New Construction Numbers: Now Versus 2005 | MyKCM

A single family housing start is defined as “the number of permits issued for construction of new single family housing units. Housing starts are an important economic indicator due to its extensive spill over benefits for the other sectors of the economy (retail, manufacturing, utilities).”

Bottom Line

Current demand for housing actually calls for more new construction to be built – not less. We should at least return to historically normal levels.

Bonnie Lelak

Experience with regular home sales, short sales, foreclosures, HUD homes, no down payment program homes, investors who flip homes or buy rentals, commercial properties, land sales, lake front properti....

Want to Advertise on this Site?

Latest Blog Posts

Happily Ever Homeowner

Married couples once again dominated the first-time homebuyer statistics last year at 66% of all buyers, according to the most recent Profile of Home Buyers & Sellers. It is no surprise that

Read More

Looking For Your Dream Home Know What You Want Vs What You Need

In this day and age of being able to shop for anything anywhere, it is really important to know what you’re looking for when you start your home search.If you’ve been thinking about buying a

Read More

4 Reasons To Buy A Home This Fall

Here are four great reasons to consider buying a home today, instead of waiting.1. Prices Will Continue to RiseCoreLogic’s latest Home Price Index reports that home prices have

Read More

How Supply And Demand Impacts Real Estate Home Values

Some Highlights:The concept of supply & demand is a simple one. The best time to sell something is when the supply of that item is low & the demand for that item is high!Anything under a 6-month

Read More