New Household Formation and How It Affects You
According to the latest data and moving industry news compiled by the National Association of Realtors, there is an increasing number of houses being listed for sale compared to December of last year, while Reuters reports that there is an increasing number of people striking out to set up their own homes. This growth will positively affect American Moving & Storage Association (AMSA) members.
From 2008 to 2010, more than 500,000 houses were built per year, which is comparably less to the other years before 2008. In 2011 and 2012, there are more than 1.1 million houses built, which nearly came close to the record of 1.2 million. There is almost a 110% increase in the number of houses built from 2010 to 2011.
The positive effect of this growth is felt mainly in the rental market, as this growth positively influenced the construction of additional apartment buildings. More apartment buildings will mean more houses being built which is a positive sign for the housing market. If this trend continues, people will start to pay higher rental fees, which will in turn further affect the housing market positively. However, for people who are mainly renting houses, this can be a bit of a trouble for them. Fortunately, the increase would not be so steep and it will still be affordable.
According to AMSA, if this trend continues, there will be 916,000 new housing projects started this year, compared to 780,000 last 2012. This rise in demand will certainly keep house builders busy for the years to come. These new constructions will fill in the demand of nearly 46 percent of people looking for homes this year. For people who are looking to rent homes, or want to own one, this is certainly looking to be very positive for them.
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