'New Home Construction Not Keeping Up With Growth'
According to Brian Wesbury, chief economist at First Trust Advisors, the US needs to add 1.5 million housing units per year just to keep up with population growth plus another 100,000 for fires and tear downs. ‘We need 1.6 million or more per year. Right now we’re down to about six and a half, seven months’ inventory, whether you look at new homes or existing homes. Housing starts are now between 500,000 and 600,000 a year,’ he said.
I think one of the secret investments, if you will, over the next decade is going to be housing. It is extremely cheap, inflation is on the way. But people are running away from it. You know, it’s that old adage – when there’s blood in the streets, that’s when you invest. And this is the time, I think, for real estate,’ Wesbury added'
noradarealestate.com
Not across the board will it work but certainly where you are looking, in much of FL as well as the areas those investors in your article are targeting. The above article might be a bit too optimistic over the next 2-4 years considering unemployment rates should remain quite high to the middle of the decade but there will be a time not too far out when inventory in many areas does drop to 3-4 months, the supply in strong hands either with no mortgage at all or long term fixed rate mortgages with very affordable payments at today's rates along with 100k+ jobs a month being created as well as construction costs through the roof and then what will happen? The best way to beat Government Sachs is to play the hand they dealt to you and use it to your advantage.. |
