Homebuilders are feeling increasingly confident as housing demand remains strong even with the ongoing Pandemic. Homebuilders and contractors are benefiting from an unusually low supply of homes and the huge demand from individuals and investors looking to buy residential homes.
The Pandemic has been good for the home building and contractor sectors as more people look to move to the suburbs or remodel their existing homes because of the nature of the Pandemic. Another trend that is growing quickly is adding an ADU (Accessory Dwelling Unit) to properties because of the ability to rent them out as “Airbnb” type rentals.
However, clouds could be forming on the housing horizon according to some.
“While 2021 single-family starts are expected to end the year 24% higher than pre-COVID 2019 levels, we expect higher interest rates in 2022 will put a damper on housing affordability,” warned NAHB Chief Economist Robert Dietz.
How things play out for home builders and construction projects is really anyone’s guess, but based on current data and expert opinions, things may cool down over the next year or two, but still remain historically strong.