New residential construction boosts Orange County economy
Following the recession of the mid-2000s, many people struggled to find hope in the real estate market. Attaining a mortgage was nearly impossible, housing prices were plummeting and the prevalence of distressed homes rose in neighborhoods across the country. However, since then, the housing market has seen a steady rate of recovery.
According to the United States Department of Housing and Urban Development, new residential construction is up in September 2012.
Privately-owned housing units that achieved building permits were at a seasonally adjusted rate of 894,000 - 11.6 percent above this year’s August rate of 801,000. Even more impressively, the number of building permits in September 2012 was 45.1 percent above the September 2011 estimate of 616,000.
The increased number of building permits could signify an improving market, as more construction professionals feel confident in the potential success of development projects.
Housing completions reach new high
Housing completions reached a seasonally adjusted annual rate of 683,000 in September 2012 - 0.4 percent higher than the revised estimate from August, according to the NAHB. More impressively, however, is the difference a year makes. In September 2011, privately owned housing completions rested at a rate of 600,000, which is 13.8 percent below figures for September 2012 in a year-over-year comparison.
Orange County home sales grow
The improving residential construction market could have given total Orange County home sale figures a boost in September 2012. According to housing market researcher DataQuick, there were 2,677 home sales during the fall month - a 6.7 percent increase from September 2011. New homes accounted for a decent portion of those property closures. The source claims that 140 new properties were sold in September 2012 - coincidentally, the exact same amount as one year prior. However the median cost of those properties increased 16.6 percent to $679,000. New houses for sale in Orange County could offer residents the chance to start fresh and make their mark on a property.
New construction boosts job growth
The National Association of Home Builders claims that residential construction has a positive impact on the country’s economy. The agency estimates that three jobs are created for every single-family home that is built. These positions could be in any of the following industries: lumber, concrete, lighting fixtures, heating and cooling and other home product manufacturers. Consequently, once a house is built, jobs are then available for real estate agents, lawyers, property brokers and business agents. As of August 2012, approximately 69,800 people worked in the construction industry in the Santa Ana-Anaheim-Irvine region, according to the United States Department of Labor.