Construction industry improves with increase in new home building

Posted by IronPlanet on Jul 15, 2012 10:58:00 PM

New home construction is a booming business at the moment, and many different industries involved in the process are reaping the benefits. The Washington Post reports there is a growing demand for new houses, which has created many jobs and bolstered local economies. The most recent report from the Commerce Department shows new home development is up nearly 30 percent annually this year over last with an annual rate of more than 700,000 new homes being built.

"When you create jobs again in the housing market, you create some multiple of those jobs elsewhere," Brad Hunter, chief economist at Metrostudy, a national research company that tracks construction data, explained to the news source. "To build a house, you're causing more demand for lumber, furniture, drapes, carpets, cement, steel, appliances... These are all the industries that get stimulated by housing."

According to The Associated Press, the entire housing industry is seeing improvements, from home sales to increasing numbers of construction projects that should continue improving for the next year at least.

"Progress going forward will have a lot to do with how bad you got beat down in the first place," Robert Dent, a senior economist for the National Association of Home Builders, told the Post. "The states that weren't hit so bad are going to come back faster."

One golf community in northeast Florida is experiencing a boom of new home construction. Golf World Village has been seeing a lot of activity in terms of contracts being made with numerous building companies. For instance, regional construction company Inland Homes is nearly finished building two homes and is starting another soon. Their homes range in price from $275,000 to $440,000 and they feature upgraded landscaping packages.

Construction companies gearing up for housing projects may want to prepare by looking for used construction equipment ahead of time. This way, they are able to develop a budget on equipment such as wheel loaders and generators before the project kicks off.

Topics: Construction, Industry Headlines