May was another month with new permits over the 5000 mark. Two fun facts to digest: The I-4 Corridor (roughly St. Petersburg to Daytona) has produced about 46% of all single family permits so far this year. The three counties in the southwest region alone have generated about 42% of all multi-family permits.
All of the usual documents are attached, along with the Piper Jaffray report and the new Harvard housing report.
I watched a video on Yahoo Finance the other day. A hedge fund manager was outlining the state of residential construction. Here are his thoughts:
Tailwinds for new home construction:
1 - Raw land has not appreciated over several years.
2 - Basic building material costs have been dropping. (see Don Hayes' attached lumber reports for evidence of this.)
Headwinds for new home construction:
1 - Millennials are having trouble getting credit. Student loan debt is a great burden for many.
2 - Millennials are staying with parents for the time being.
3 - Mortgage rates are going up. (This could turn out to be a PLUS if it spurs procrastinators into action.)
There are plenty of pitfalls, but lots of promise in the future of housing. Flexibility and embracing change are the rules of the day.