Remodeling spending is expected to increase by the end of the year and accelerate to double-digit growth in the first quarter of 2011, according to the latest Leading Indicator of Remodeling Activity (LIRA) report by the Joint Center for Housing Studies of Harvard University.
Kermit Baker, director at the Joint Center for Housing Studies, says homeowner optimism is driving the trend toward investing in the home again. “The recovery in home improvement activity appears to be moving beyond simple replacement projects and energy retrofits to broader remodels and upgrades,” Baker says. “A wider activity base would help generate the expected growth in the quarters ahead.”
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Housing starts rose to a seasonally adjusted annual rate of 626,000 in March, 1.6 percent higher than the 616,000 estimated in February and 20.2 percent higher than the 521,000 estimated a year ago, according to the latest figures compiled by the U.S. Commerce Department.
Permits for new residential construction rose 7.5 percent in March to 685,000 from 637,000 in February, and they were 34.1 percent higher than the March 2009 estimate of 511,000.
Builder confidence rose four points this month to reach its highest level since September 2009, spurred by increased activity from buyers, according to the latest NAHB/Wells Fargo Housing Market Index. “An expected surge in buyer activity leading up to the expiration of the homebuyer tax credits and a gradually improving economy helped to brighten builders’ view of the marketplace in April,” says NAHB chief economist David Crowe.
However, builders are cautious about the next six months as several issues could continue to drag on the housing market, such as credit shortages, high inventory of foreclosures and concerns about the job market.
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A new study by the USC Lusk Center for Real Estate finds that more immigrants are choosing to put down roots in mid-size cities rather than larger gateway areas, in part because many smaller metro areas feature established, growing neighborhoods of fellow immigrants and less competition for entry-level jobs. The study, “Immigrants and Housing Markets in Mid-Size Metropolitan Areas,” finds that mid-size markets, such as Nashville, Detroit, Colorado Springs, Colo., Minneapolis, Sarasota, Fla., and El Paso, Texas, had an average 27 percent increase in new immigrant population at a time when the major gateway cities are losing residents. The largest numbers of immigrants came from Mexico and China. The study estimates that immigrants and their descendents will make up 82 percent of U.S. population growth over the next 40 years. re Immigrants Choose to Live in Mid-Size Cities A new study by the USC Lusk Center for Real Estate finds that more immigrants are choosing to put down roots in mid-size cities rather than larger gateway areas, in part because many smaller metro areas feature established, growing neighborhoods of fellow immigrants and less competition for entry-level jobs. The study, “Immigrants and Housing Markets in Mid-Size Metropolitan Areas,” finds that mid-size markets, such as Nashville, Detroit, Colorado Springs, Colo., Minneapolis, Sarasota, Fla., and El Paso, Texas, had an average 27 percent increase in new immigrant population at a time when the major gateway cities are losing residents. The largest numbers of immigrants came from Mexico and China. The study estimates that immigrants and their descendents will make up 82 percent of U.S. population growth over the next 40 years.
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