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A considerable portion of the US economy is driven and boosted by the pursuit and realization of homeownership which in turn spurs residential construction and remodeling...MORE. Homeownership triggers a series of beneficial components including personal wealth building, job growth, economic expansion, community stabilization and so much more. Recent news reports substantiate these facts.
JOBS & THE ECONOMY // The construction of new housing is an integral component of the economy.
From 1980 to 2007, residential fixed investment, the Bureau of Economic Analysis’ measure of the economic value of new home construction and remodeling, contributed on average 4.5 percent to the U.S. GDP.
During the boom years from 2004 to 2006, it constituted an even greater amount, peaking at 6.3 percent of GDP in the last quarter of 2005. However, when the housing bubble began to burst in 2007, new home construction’s share of GDP plummeted. As of the third quarter of 2011, residential fixed investment was only contributing 2.2 percent to GDP, 2.3 percentage points below its historical average. This suggests that the economy is, in effect, missing 2.3 percent of GDP because of the distress in the housing industry.
HOMEOWNERSHIP & BIG BENEFITS // The current market presents some of the most favorable conditions for homebuyers in years, particularly for first-time buyers.
Why is everyone nagging you to buy a house these days? When real-estate values were crashing — prices dropped nearly 33% from the second quarter of 2006 through April 2009 — renting that apartment was darned savvy. And since home values are projected to drift lower in 2010, getting into the market now may seem like financial suicide. But the truth is, even the worst housing slump since the Great Depression can't remove the long-term benefits of homeownership. Meanwhile, the combination of lower prices, cheap mortgage rates and a special tax perk from Uncle Sam has produced some of the most favorable conditions for homebuyers in years.
JOB OUTLOOK // According to the Department of Labor and Statistics overall employment in the construction industry is expected to sharply rise during the next decade.
Overall employment of construction laborers and helpers is projected to grow 25 percent from 2012 to 2022, much faster than the average for all occupations. Employment of construction laborers is projected to grow 24 percent from 2012 to 2022, much faster than the average for all occupations. Laborers work in all fields of construction, and demand for laborers will mirror the level of overall construction activity.
OUTLOOK IN CONSTRUCTION