4 Growth Areas For Home Building In 2018

Dated: 01/11/2018

Views: 42

4 Growth Areas for Homebuilding in 2018

DAILY REAL ESTATE NEWS | WEDNESDAY, JANUARY 10, 2018

A growing economy, supported by positive demographic trends, bodes well for the housing market in the new year, even as affordability challenges rise from an increase in prices and mortgage rates, according to realtor.com®’s 2018 Housing Forecast, released this week at the National Association of Home Builders’ International Builders’ Show in Orlando, Fla. Realtor.com®’s report highlighted the following key factors for builders in 2018, including: 

1. Entry-level home construction marks a huge opportunity for growth. 

Entry-level homes will continue to see price gains due to the larger pool of buyers who can afford them and the more limited homes available for sale in this price range.

2. Millennials are expected to gain market share in all home price segments. 

With the largest cohort of millennials expected to turn 30 in 2020, their homeownership market share is expected to increase, realtor.com® notes. Millennials are aging into their peak family-forming years, and as such, their housing priorities will likely shift from proximity to urban life to more space and quality schools.

3. Southern markets are predicted to lead in sales growth.

Strong economies and healthy building levels will help drive Southern markets to beat out the national average home sales growth. “Builders who can adapt to regulatory hurdles in more challenging Western markets will find that prices still outperform national average growth in this region,” realtor.com® notes. 

4. The tax bill is a game changer. 

With the passing of the Tax Cuts and Jobs Act, the wealth and income effect of tax cuts will likely stimulate demand and increased production in the short term, but could lead to fewer sales and impact prices negatively over time in markets with higher prices and property taxes, realtor.com® analysts note. “Be wary of economic capacity constraints as inflation will kick in and the Fed will more aggressively increment interest rate increases,” they add.

Source: realtor.com®

Want to Advertise on this Site?

Latest Blog Posts

Taking Property Ownership Correctly For Unmarried Property Owners

Investing in property with friend and relatives and other investors can be fun and profitable.  This can also be a legal situation that can turn into an expensive situation later on.  I

Read More

Family Fun In Ocoee This Weekend

Food Truck Friday & Movie in the ParkLooking for something to do this weekend in Ocoee? Bring your lawn chairs and/or a picnic blanket and head to Bill Breeze Park! The city is hosting its Food

Read More

How To Increase Your Chances Of Purchasing Your First Home

Between rising prices, tough loan limits, and massive competition among other eager would-be buyers, it can seem like an impossible feat to purchase your first home. Homes in first-time buyer ranges

Read More

Orlando Ranks Second For Best Future Jobs

Orlando has ranked second according to FORBES list of best cities for future, job growth.With so many new jobs opening in Orlando the home sales prices are increasing. Would you

Read More