New housing starts up in 2011

While out with clients earlier this week I was startled to see so much new construction popping up, primarily in the Meridian area. Obviously there are builders out there feeling confidence in the direction the valley economy is moving. Recent predictions at the International Builders Show in Orlando confirm a slow rising optimism toward recovery. Single-family starts are expected to raise 21% to 575,000 new homes in 2011. Wow, really 21%! Hold your horses, off the bat that may seam like a lot but we are just beginning to make up for lost ground. When you look at the fact housing starts are down 80% from it’s peak we have a ways to go. The same economists who spoke at this event are predicting the housing construction world will blast off in 2012. I have read numerous ‘experts’ over the past year predicting a housing shortage which seems to be an affront to many but I think their is a seed of truth in their predictions. In ‘normal’ economical times we have needed to build a minimum number of homes to keep up with population growth and we have not done that for several years. When the bottom fell out locally we where a bit over built so I doubt we will see a huge shortage but I believe there will be some areas in the valley hit with shortages.