This month, the National Association of Home Builders (NAHB) released a housing market report showing that builders across the nation are now more confident than ever before in the home building and real estate markets.
While COVID-19 has had a mostly negative impact on the economy as a whole, it has proven helpful for home builders. Health concerns over the virus have motivated urban residents to relocate to less densely populated areas, thus increasing the demand for new homes in suburban and rural areas.
“The suburban shift for home building is keeping builders busy, supported on the demand side by low interest rates,” Robert Dietz, chief economist for the National Association of Home Builders, said in the report.
But action needs to be taken in order to continue this strong market performance, Dietz warns. Lumber prices have risen 170% since April, and while some of that cost has been offset by increasing the price of finished homes, that practice is not sustainable long-term. “More domestic lumber production or tariff relief is needed to avoid a slowdown in the market in the coming months,” Dietz said.
Despite the rise in material costs, there’s no sign that the demand for new housing will slow down anytime soon. Make sure you’re able to take advantage of the building boom by keeping your contractor license up-to-date. To complete your continuing education requirements, just choose your state above to get started. And remember to contact us at 800-727-7104 or firstname.lastname@example.org if you have any questions.