Oct
22

Single Family Starts Reaching New Heights in Chicago

October 22, 2013

New homes in ChicagoThe road to recovery has been hard, but there’s some bright news for Chicago new home buyers and for the city itself, as the number of housing starts is hoped to reach 5,000 this year. While that’s nothing much compared to the heights of 18,000 to 20,000 pre-recession numbers, the growth will be a welcome sight to all of us watching the recovery.

This boost comes from both the climbing economy, rising demand and a low inventory of resale homes as many homeowners remain underwater and others await higher profit margins. This demand and a lack of inventory also have benefited builders, who were able to push through price increases as potential homebuyers gave up looking at existing homes. These factors all add up to the hope that the number of starts will break 5,000 and grow as much as 30 percent next year.

However, some consider 30 percent to be too optimistic with looming issues like credit conditions, which remain challenging for many to secure financing (despite average homebuyer credit scores being higher than in the past). There are also concerns about how new lending regulations will effect numbers, with fears that new rules will shut out more buyers.

The question is which will win in the end: the  challenges or the effort and optimism in the market, and whether or not the Chicago market will recover to pre-recession conditions by 2015. What do you think – is 2015 a reasonable expectation, or should we be setting a different date, and why? Share your thoughts below in the comments or with us on Facebook!

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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