Improving Housing Sector Offers Opportunities
Single-family housing starts in 2011 were up 11.6% from 2010, according to the Census Bureau.
According to the NAHB, 2011 ended on a positive note with economic activity continuing to expand at a moderate rate and the housing sector finally gaining some positive momentum. By targeting those sectors with the most growth, landscape contractors and maintenance professionals can increase their chances of securing more work.
''We're looking for some solid growth in 2012 and more momentum in 2013,'' said Bob Denk, NAHB economist. ''It started to pick up in 2011, but last year things were up and down. Things should start to solidify this year.''
According to Jed Smith, a National Association of Realtors economist: ''We foresee existing home sales market increase five percent in 2012, if things keep going the way they're going.'' But simultaneously Smith warns not to expect drastic improvements immediately. ''We've been through a massive de-leveraging of the economy. Household worth lost $14 trillion during the Great Recession. Because of the major financial problems we've encountered, it's going to take two to three times longer (than normal) to recover from this recession.''
Pent-Up Housing Demand
NAHB research estimated that 2.1 million younger workers are still living with their parents or have doubled up with roommates due to an uncertain economy.
As the economy and the job market hopefully improve in 2012, these potential households will be unlocked. This will lead to increased demand for rental housing and eventually these workers will emerge as prospective homebuyers.