LIME REALTY GROUP is back with another prediction for 2017. Yesterday we talked about how properties will move faster on the market this year than previous years. And we will also make another prediction…
Our third prediction is new construction growth will slow. Single family new construction grew in 2016 by 9% nationwide. That’s still much lower than historical averages due largely to labor shortages. Nearly one in four construction workers right now are foreign born and stricter immigration policies by the new administration are likely to decrease the amount of workers looking for these jobs.
It’s possible growth could slow as low as 6% nationwide. This decrease in new home starts will affect the availability of starter homes thereby increasing the demand for ones being built; which will lead to higher prices.
Right now the number of construction workers employed in residential housing is 40% lower than its peak in 2006.
We don’t expect that will greatly affect our area as we have a relatively different average in Southern Utah. But the affects it might have on markets outside of ours can trickle down to this area. We’ll have to wait and see.
Check back tomorrow and we’ll make another prediction.