After almost 2 years, residential construction is finally on the rise! Let’s take a look at what this means for Florida’s real estate industry and why now is the time to buy a home!
Is Residential Construction on the Rise?
After more than a year of slowed construction activity, Florida (and the nation) is seeing a rise in new residential developments. Why is this and what does it mean for Florida’s real estate industry?
Why a Growth in Residential Construction?
Residential construction has seen solid growth in the past two quarters. Experts believe this is attributed to a decrease in mortgage rates combined with a more secure job market. In short, there is more faith in the economy than there has been in recent years. This leads to builders feeling safer taking the risk of building new homes.
Let the Statistics Speak for Themselves
- Construction spending in January was up 1.8%, which is a record monthly increase in almost 2 years
- Spending on residential construction, especially single-family homes rose 2.1%
- Residential permits increased by 11.1% compared to 2018
- Housing completions increased by 7.3%
What Does This Mean for Florida’s Housing Market?
Experts predict that new construction growth will continue well into 2020. What does this mean for Florida’s real estate industry? The hope is that this growth will help alleviate the housing inventory shortage that has been plaguing the state and the nation. There is expected to be 1 million new homes completed across the nation by the year 2021.
Those who will soon be in the market to purchase a home or have already been looking for some time but have been unable to find suitable inventory due to the housing shortage crisis may see their luck finally turn. Let’s hope we see continued residential housing growth throughout the year.
I’m Gitta, with Gitta Sells. With over 30 years of experience in the real estate industry, I am here to answer any questions you may have when you get ready to purchase your next home. Feel free to contact me at 407-330-2181 or email me at gittasells@gitta.com. Until next time, I hope everyone has a great week!
