New Housing Starts Up in Wake of Hurricanes

jorlauski (58)in #realestate • 7 years ago

Although the hurricanes Harvey and Irma put a major damper on new housing start ups in Texas, things may finally be starting to look up. Texas consumers saw retail sales increases in September in Texas and Florida as they bought new cars and flooded the building supply stores to begin repairs. Meanwhile gas prices in the U.S. have been driven higher by the storms and predictably pushed up sales totals.

While we saw many price increases in food , gas, and building materials, that still hasn't stopped the builders from picking up the pace again . Families need new homes more than ever after the devastation of the two hurricanes that were noted as the worst in recent history.

According to PNC Financial Services Group, pump prices fell nearly 1.5% last month. Core prices, which strip out volatile food and energy items, increased slightly in September, despite expectations that damaged homes and vehicles would push up rent and auto prices, says Nomura economist Lewis Alexander. They also predict a slight uptick in rents to show up after October.

I expect that a lot of the increase will come from investors who have been flocking to the state to pick up on the discounted properties that are available. Real Estate investors recognize the opportunity to take advantage of the destruction and are quick to jump on the chance to profit from it. This continued demand will likely lead to even higher prices.

Although housing starts were pummeled by the hurricanes in September, falling 4.7%., economists expect Commerce on Friday to report an October rebound, with starts rising 5.4%