If you look at the 3 years of 2004 through 2006 you can see that we permitted to build 100,000 new homes in Ohio. From 2007 through 2013 we finally got another 100,000 permits issued. Yea!
What Will the Future Hold?
Will new housing ever get to being built at a faster rate? The simple answer is yes. Pressure continues to build in the industry (pun intended) to start putting up new homes faster. The demand is being pent-up for a multitude of reasons including, but not limited to:- tightened lending practices
- bankruptcy / foreclosures
- increase in multi-generational households
- existing home price recovery
It is my opinion that the biggest factor here is that of existing home price recovery. Since the inventory is still relatively cheap in comparison to new home construction costs, the majority of buyers will opt to enter the market by buying existing.
As the housing market continues to strengthen and existing home prices rise, more and more buyers will choose to build new. The fact that their past foreclosure actions and bankruptcy will be far enough removed that they can qualify for lending will also help strengthen the market.
I have an opinion of how the lengthened bottom of the new homes recovery may be good for future quality, but that's a topic for another place
http://www.ohiohomesandrealestate.com/blog/ohio-home-buyers-still-not-going-for-new.html
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