One can imagine that a major factor in the housing economy would be the continual building of new houses in areas that would promote the stimulation of residential prowess. After all, if more people come to live here in the United States, generally that would mean more income for the economy. Moreover, new housing offers a much better standard of living than houses that have been around for more than a century, even after countless updates. It refreshes the real estate market better than anything else.
With that knowledge, it’s a sad, sad time given that statistics show we’re at a flat line with building permits. From January of 2004 to January of 2005, building permits processed had increased from 80,000 to 210,000 but then dropped in July of 2010 to a very despairing 50,000. The trend is fewer and fewer manufacturers are building new houses. Bad news for the housing economy.
The fear is that the number will either stay that way–or continue to drop. It leaves many residents with nothing more than stagnant sales of older houses and less opportunities for updating given the high costs. Fewer residents will consider moving or even purchasing homes and will opt for rentals in condos and apartments. It’s a known fact that the housing market represents a strong percentage of the economy: sad to say that the economy might suffer!
What everyone needs to do is invest a bit! New jobs need to be created. Risks need to be taken. Or else the housing market will never pick back up. We’re at the lowest of the low, friends; don’t fear, though, for all it takes is ambition to bring it back up.