Great Indicator Housing is on the Rebound, Home Construction is on the rise
There are some benchmarks for how the housing industry is doing in the United States. One indicator that a housing market is improving is building activity being on the rise, this is starting to happen again. The numbers are still dismal in comparison to average, but are encouraging moving forward. According to Stats from the National Association of Realtors, home construction activity increase was felt in most regions of the country. It rose 32.3 percent in the Midwest, 27.6 percent in the West and 5.4 percent in the Northeast. However construction fell 3.3 percent in the South. N.A.R. states that new homes can spur job growth. Each new home built creates the equivalent of three jobs for a year and generates about $90,000 in taxes.
Additionally the number of permits is even higher than the number of home starts which point to positive trends in the Housing industry. Behind the scenes, the Foreclosure market continues to create the big question, “How much will the Shadow Inventory impact the Housing market?” I believe it depends on the speed at which the houses get released into the system. As consumer confidence continues to build, you will see more and more people move out of their previous shared housing arrangements and into their own homes. This is great for the Landlords ability to increase rents and increase cash flows.
If you would like to find out more about emerging markets in the US, click the link to find out top picks!