The Home Building Boom Is Over. Now What?
For the past eight years or so, record low interest rates have fueled new home building to levels not seen since just after the second World War. Independent consumer electronics and home appliance retailers have been successful riding that wave, adding custom kitchens, integrating audio/video systems and delivering services to those new houses.
But the home building boom is over. Stopped cold in its tracks. And some are asking “Now what?”
New home construction was forecast to decline by five to seven percent last year, but it fell much faster. In October, it dropped a precipitous 28 percent. Large homebuilders like D. R. Horton, Centex and Pulte have taken write-offs on inventory of raw land.