2012 seems poised to be a year of rambunctious construction activity for builders, according to a new study by Houston-based Metrostudy.
Mike Inselmann, the president of the firm, said that builders will start at least 20,000 new single-family home projects this year, a 10 percent increase over 2011, according to a story by the Houston Chronicle‘s Nancy Sarnoff.
“We’re in the midst of an economic recovery,” Inselmann said, who cited November’s strong year-over-year performance as evidence.
In addition, Inselmann predicts that existing-home sales for single-family properties will increase at least 10 percent to as many as 59,4000 transactions, according to a Houston Business Journal article.
Mike Dishberger, the CEO and co-owner of Sandcastle Homes, is equally optimistic about 2012.
Also quoted in Sarnoff’s piece, Dishberger said Houston’s thriving energy market is supported by its growing job market, both of which contribute to growing consumer confidence.
“People are out looking for homes,” Dishberger said, who was also the past president of the Greater Houston Builders Association. “They’re not just window-shopping.”
Beyond single-family homes, though, builders can also expect great demand for multifamily units. As we reported in December, multifamily starts were up 25 percent in the latest housing data, and apartment vacancies are currently at their lowest level in 10 years, an indicator for a rising demand that will soon require additional units to meet.