4 Growth Areas For Home Building In 2018

Dated: 01/11/2018

Views: 80

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

Universal Acquires More Property For Expansion

Clearing the way for a new theme park, Universal on Thursday acquired hundreds of additional acres in Orlando, along with the deed restrictions that once were intended to block such a project.The

Read More

House Rentals Outpace Apartment Boom

House Rentals Outpace Apartment Boom DAILY REAL ESTATE NEWS | WEDNESDAY, APRIL 11, 2018 The multifamily sector has seen a frenzy of apartment construction over the last decade, but it’s single

Read More

More Consumers Say Its A Good Time To Buy

More Consumers Say It’s a Good Time to Buy DAILY REAL ESTATE NEWS | TUESDAY, APRIL 10, 2018 The latest consumer sentiment index from Fannie Mae shows that home buyers don

Read More

Retiring Where Does Your Money Last Longest

U.S. cities where $1 million lasts longest in retirement  McAllen, Texas – 42.3 years Harlingen, Texas – 39.5 years Richmond, Ind. – 39.3 years Kalamazoo, Mich. – 38.1 years

Read More