Tuesday, September 24, 2013
Construction Spending Reaches New Heights
Real Estate Pulse 2013: It continues to be a promising year for the real estate industry in the U.S., especially in the Tampa Bay area. We are seeing irrefutable signs of housing recovery. The latest excitement to make headlines is the blossoming new construction occurring in today’s market. In July of 2013, construction spending increased to the highest level in the last four years here in the United States. With the recent low inventory levels, this is exactly what some buyers have been waiting for. Spending increased as much at 5.2% nationwide since July of last year according to the Commerce Department figures. As for private homebuilders, spending increased .6 %, which is the greatest change we have seen since September 2008. Private residential construction wasn’t the only category to boast large improvements, with non-residential and factory construction also climbing to 1.3% and federal spending increasing by 1.1%.
What can be expected from these new increases in construction? Well for starters, continual gains in employment opportunities, and residential and non-residential housing construction should continue to improve throughout the end of the year. These factors alone should contribute significantly to the strengthening and expansion of our economy, providing new jobs and new real estate. The real estate industry and current economic conditions go hand-in-hand with each other, where improvements in one category reap positive results for the other. It is important, however, to be mindful of the tight land inventory levels. It is extremely beneficial to become knowledgeable of the current market conditions in order to make the right decisions regarding your housing needs.