Why renters are still driving America’s building boom

During the housing crisis and economic recession millions of homeowners lost their homes due to foreclosure, short sale or bankruptcy and many of those former homeowners are now renters.

Due to the demand by an increased amount of renters and the improving Real Estate market, more homebuilders across the United States are building homes once again, hiring skilled workers and best of all, building bigger homes than they did a few years ago.

Have The “Good Times” Returned?

Thanks to a recent report from Fortune Magazine we know that single-family home construction is now at a five year high and construction of family homes accounted for almost 70% of new construction that was started as of February 2013.

The biggest “players” that are leading the growth of the construction market are of course renters and recent estimates show that almost 35% of residential homes that are in construction now will end up becoming rental homes when they are finished and this statistic is the highest it’s been in almost 20 years.

Many Benefits For All

With the increase in rental home and apartment construction across the United States, all parties involved will benefit including the owners of the rental properties, renters and the lenders, these three parties will also be spending more money, pay more taxes and contributing further to the economic recovery as a whole.

People who are renting now, especially people who once owned homes but were affected by the economic recession, are expected to become home owners once again as many of these former homeowners will be able to own a home again in as little as four to seven years, depending on their former lender and financial situation.

To learn more about the current housing market or to view the latest Orange County homes for sale , contact the Fred Sed & Associates team today by calling us at (949) 272-0125.