so i keep talking about this housing demand tsunami and you’re probably wondering what i’m referring to (maybe). well, first of all if you know me or have read my articles you’ll know i was born and raised at camp positive. my glass is always half full…..and sometimes its just overflowing with abundance – much like today’s news that i bring you!
let’s dive into some of the housing demand tsunami culprits, shall we?
JOBS! – America, as a whole, has LOST jobs for the last 3 years and if folks are losing jobs OR scared they might lose their job you can bet they will NOT be buying real estate. the tide’s changing though! last month (march) America added 162,000 new jobs compared to february’s 14,000 LOSS (which is more representative of the last 3 years). additionally, civilian employment, an alternative measure of jobs that includes the self-employed and start-up businesses, is up 1.36 million in the past 3 months which is the most for any 3-month period since 1994. furthermore, forecasts are calling for a modest 66,000 jobs added this year in DFW alone!!
HOUSING STARTS! – you may remember from my previous articles and/or equipping calls that America needs to post ~1 million housing starts annually just to keep up with population growth & demolitions. currently we are on pace to hit a number closer to 575,000 – HALF of what, historically speaking, we need JUST to keep up! i’m happy to report that housing starts here in DFW are UP 71% according to Residential Strategies report. in the first quarter of ’09 DFW posted 2,413 home starts…..Q1 of 2010 DFW began construction on 4,124 homes OR 71% MORE!
FAILURE TO LAUNCH! – here’s something you may not have thought of – “multi-generational households”. multi-generational households are those homes where there are 2 or more generations living together. we are at a time where more and more 25-35yr olds are living with mom & dad. why? jobs! – or lack thereof. Pew Research Center reports that multi-generational households increased to 16% of the population. in rough numbers, this means that 7 Million MORE people were living in multi-generational households in ’08 than in ’00. that, alone, represents a HUGE homebuyer market!
according to cole the KEY to a healthy housing market is JOB creation. job creation = housing demand. when demand picks up (very soon) be prepared! as these professional kids living at home began to enter the job market there will be a HUGE appetite for housing….and if housing starts have been running at 50% AND prices are down – WHEW!!
according to cole the real estate sky is NOT falling!
much success today! – cole