Housing Dimensions Blog
by John Burns, CEO
Our Chief Demographer Chris Porter shared the following amazing chart with me, showing the explosive construction growth in the Southeast. Any builder or building products company that has invested more heavily in the Southeast has certainly reaped the rewards.
Chris, our Southeastern consulting leader David Kalosis, and I believe this growth trajectory will continue. Affordable housing, pro-growth economies, and great regional airports will continue to attract people to the Southeast. David also notes that the Southeast recovered later than many other areas, so recent momentum is strong, and builders are currently selling many high-end homes to relocating executives.
by John Burns
In the last 15 years, home prices have grown 29% faster than incomes, primarily due to falling mortgage rates. Since the monthly payment determines what most buyers can afford to pay for a house, we thought we would show you the powerful stimulus that lower interest rates have on home price appreciation.
Source: John Burns Real Estate Consulting, LLC
by John Burns
As noted during our consulting team's visits to thousands of communities all over the country last year, and also shown by the slower 2014 sales in our master-planned communities survey, the land development and home building industries need to shift their mix of communities to target a different mix of buyers than the traditional mix. New home community segmentation needs to change in four ways: