Nov
23

Housing Starts on the Rise in all National Markets

November 23, 2012

chicago real estate housing startsDuring October, the starts for single family detached homes increased in 38 out of 40 national housing markets, according to a report by Metrostudy. In Chicago, the rate of new home construction has increased 25 percent from 2011.

The first reason for the increase is that builders liquidated their inventories during the housing bust of 2008, which caused low levels of housing production. Now that most of the excess inventory has been sold, housing production is increasing again. A second reason is that the housing bust caused a high demand for rentals, but now that demand is being transferred to the single family housing market.

However, there are still a few factors preventing Chicago builders from launching even more projects. Unemployment levels in Chicago are at 8.8 percent, and the unemployment rate will need to drop even further before housing starts return to their pre-2008 levels.

According to Chris Huecksteadt, Director of Midwest Markets for Metrostudy, there are currently more than 55,000 builder ready home sites in the Chicago area. Unfortunately, many of these sites are located in less popular areas that will not experience construction activity for the next few years.

Ultimately, there is still a lot to be optimistic about regarding the Chicago housing market. Many Chicago builders are seeing more traffic from homeowners who are serious about buying a new home and who are willing to pay the builder’s original asking price. A residential construction recovery is taking place in many Chicago neighborhoods including the West Loop and Lincoln Park, and home values are rising in certain south suburbs.

Do you think housing starts will continue to increase?

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

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