The Big Housing Migration and How It Affects the Homebuilding Industry
Housing starts for December 2020, reported in late January, hit a level not seen since 2006.A confluence of several factors is driving this trend which we’ll explain in this article.Translation: the housing market is booming once again. Is the boom here to stay, and how does this fare for the homebuilding industry?Quick Rundown on HomebuildersIt’s in the name: home builders build and sell homes.They buy plots of land in neighborhoods poised for growth and use construction crews to build houses on the land. Once the house is built, they typically use their own team of realtors to sell the house.Some homebuilders build speculatively–meaning they build before they have a buyer, and list the home on the Multiple Listing Service hoping to get a good price.On the other hand, many r...