One of the key indicators most economists will look to when determining the health of a market is the number of housing starts, essentially new construction. In an interesting piece today, Inman news discusses the relatively low inventory numbers of today’s market as related to what should be an increase in housing starts. http://www.inman.com/2013/09/17/why-hasnt-the-inventory-shortage-fueled-more-home-construction/
As has become refrain in analysis and forecasts on housing, the article points to the number of households that should exist, versus the number that do exist because more and more households are comprised of multi-generational members living together.
When you’re planning your next housing move, one of the issues to consider is whether or not your household will need to accommodate small children, or grown children, or elderly relatives. Some properties and communities are more adaptable to these lifestyles than others so it’s important to know what you’re getting into. There are also financial considerations. Should you buy bigger now and pay more? Should you buy smaller now and know that you’ll have to buy bigger again in the next few years? What’s the cost difference? Where will your equity be best served? What financing instruments work best with your timeline?
If you have not previously considered a multi-unit building because your current intent is to live in a single family home with your own family, you may want to re-think. In many communities, the 2-4 unit building allows for an excellent solution to the issue of living with extended family. One unit can be duplexed down for more space and comfort, while another can be left to accommodate fewer occupants. There are lots of solutions to these concerns, but you have to plan smart and work hard to make the right choices.
For help working through these questions and getting the answers you need, please give us a call on 773-467-5300 or visit http://www.carmenandtony.com for more contact information. For all of your real estate needs, we are here to help.
- WRAPUP 1-U.S. housing starts rise in July but miss forecasts (uk.reuters.com)
- Housing Starts in U.S. Rise on Multifamily Properties (bloomberg.com)
- Rental Nation: US Home ownership rate continues to decline to multi-decade lows while rental vacancies continue to decline. Record prices in a few areas. (capoliticalnews.com)