http://money.cnn.com/2013/01/27/news/economy/housing-economic-growth/index.html?iid=SF_E_Highlight
Friday, February 22, 2013
Housing to drive economic growth (finally!)
The bursting of the housing bubble was the main thing that forced our economy into a recession, but today economists say it could be the greatest component that drives the growth of our economy in 2013. The reason for the growth in the housing market is due to the record low mortgage rates, rising home prices, and a drop in foreclosures which has sparked the interest of buyers to start looking to build new houses. Also, there will be approximately one million new housing projects started across the nation. This will create over a million jobs for people involved in the construction and housing industries. Home building is expected to rise over fifty percent this year which shows just how strong the housing market is bouncing back. The demand for houses is far more than the supply of houses, this forces home builders to build new houses to sell. This creates construction jobs, real estate agent jobs, manufacturing jobs to build products for the new houses which increases consumption overall.
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In reading about this article, I was extremely interested in how this could be true. I would never have guessed that a recession could actually help our economy and we as a nation would benefit. It is great to hear that people will be buying homes again and this will lead to job creation in the market. A drop in foreclosures is definitely a step in the right direction for the housing industry and shows the shift of our economy for the better.
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