This week, I came across an interesting report from Zelman & Associates on the state of the housing market. The report covered a variety of topics and you can read it here.
- Growth of single-family houses
- Millennials and the future of single-family living
- Is single-family housing still affordable?
- Is mortgage credit too tight?
- What happens to home prices if the economy goes into recession?
One of the charts I find most intriguing appears on slide 4. It shows construction activity remains insufficient to meet present demand. In fact, “single-family starts” are 35% below normalized level.
To me, the data shows how the market has rebounded from the recession and people are again ready to buy homes. But the inventory lags, which makes now a great time to invest in land – especially in the Atlanta metro area, where Joffe Land Company has most of our investments.