South Shows Strong Building Starts, Permits, & Production Numbers

The month of October in the real estate industry typically is a slower month than other more productive months of the year.  There is a sharp rise in activity in the Greater New Orleans / St. Tammany Parish area during the months of January – June.  During the Recession, the summer months of July – September definitely were slower but still 002_mlsactive, and then as October, November, and December approached, the housing market in our area tapered off until the holidays.  Post Recession, we have seen phenomenal, record-breaking numbers for the months of July – September, and this year’s October was nothing to “sneeze about” in the South in general either according to the National Association of Home Builders (NAHB).

During the month of October, single-family starts rose 4.2%, the highest they have been since November, 2013.  This is really not a surprising trend in that with the atypical frenetic activity during the summer months, there would have been many more signed contracts for new, single-family homes than is normal for that time of year, which would translate to early fall starts for new homes.  In addition to the sharp increase in housing starts, Total overall housing production for both single-family and multi-family homes rose 10.1% in the South, even though multi-family production was off slightly and brought the numbers down in all other regions of the United States (Northeast, Midwest, and West).

011_mlsIn the other regions of the United State, the recovery from the Recession has progressed a bit slower than for the Greater New Orleans area.  In fact, local employment statistics show that New Orleans’ unemployment rate has been dropping faster than the national average.  Even with this information, a 10.1% increase compared to a decrease in all other markets is a good sign for the economy and housing market in the South. Overall, building permits for single-family homes in October increased 1.4%, and building permits for both single-family and multi-family homes rose in the South by 8.8%.  St. Tammany Parish has also had record-breaking months for single-family home permits recently as well.

Business is booming for Ron Lee Homes on the Northshore of Lake Pontchartrain in St. Tammany Parish.  We have been so busy that we have been asking our valued clients to be patient with our building schedule because of the overabundance of business.  The construction and building industries’ gain is also a gain for the economy.  According to the National Association of Home Builders, the following statistics show the impact of the housing market on the GDP (Gross Domestic Product) – the measure of the United States’ economy.

Information regarding building an average of 1,000 single-family homes:

• Creates 2,970 full-time jobs
• Brings in $162 million in wages
• Merits $118 million in business income
• Achieves $111 million in taxes and revenue for state, local and federal governments

“The rise in single-family starts is more proof that the economy is firming and consumer confidence is growing,” said Kevin Kelly, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Wilmington, Del. “We expect continued upward momentum into next year.”

To Get More Information about building a new custom home in St. Tammany Parish with Ron Lee Homes, Call 985-626-7619 or E-mail [email protected].

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