New Constructions in the US Housing Sector Expected to Increase by 10% This Year

new constructions
Image Source: Garreth Wilcock, CC BY-SA 2.0

According to the chief economist for the National Association of Home Builders, Rob Dietz, new constructions in the US housing sector are going to rise, with Donald Trump as president and interest rates expected to rise.

Contractors operating in the country are saying that, compared to last year, they are currently receiving more calls this year from those who want to build new homes. And as per Dietz, President Trump will make a difference to boost this sector.

Giving his economic forecast for 2017 to local owners of home construction firms, he said that Trump can improve the market by making changes to cut regulatory costs that have gone up in recent years and are making it difficult for buyers to go with new constructions. He said:

“Impact fees, minimum lot size requirements, which make you use more land than what is necessary, environmental rules and the rest are at the construction phase. Those, include building code requirements and labor code requirements.”

Aside from Dietz, local builders are also optimistic about Trump making those changes. One of them is John Sudon, who commented that business is already starting to pick up right after Trump won the elections. He stated:

“Usually it’s March or April before housing starts up. It started on January 1st, so I think there’s a tremendous feeling of comfort and belief the new President is going to do what he said he’s going to do.”

All in all, Dietz predicted a 10% increase in new constructions. However, he added that more available lots for suburban construction will be needed for his predictions to happen.