Is Real Estate going to save our economy?

Despite the pandemic and a tanking National economy, residential construction continued to boom in the final months of 2020 - a relief for all adversely affected by the housing market’s low inventory. In fact, according to the U.S. Census Bureau and U.S. Department of Housing and Urban Development, building permits were up 17.3 percent for privately owned housing units from the previous year.

According to Lawrence Yun, chef economist at the National Association of Realtors, “Home construction finished the year with the biggest bang since 2006 with 1.669 million units started for construction in December (annualized).” In other words, the worst of the housing shortage could be over. But, despite the uptick in home completions, we aren’t close to breaking even in terms of supply and demand. We’ll need another two years at a minimum to properly meet the housing demand.

Although we won’t solve the inventory problem anytime soon, we are inherently solving another. Construction leads to local job creation and can revitalize a community. On the National level, it is very possible that the housing sector could lead our nation’s economic recovery in 2021.

Colorado Springs is the perfect case study. Before COVID-19, Colorado Springs was named on of the fastest growing cities in America. The pandemic negatively affected many cities. With the rise of teleworking, people are leaving cities for more space and areas less affected by COVID. Colorado Springs is one of the cities that’s continued growing despite COVID. As more people flood into the Springs, the demand for housing continues to rise. Residential construction exploded as a result. In November 2020, Pikes Peak Regional Building Department reported 453 new permits. That’s a 58% increase from the previous year. 

Colorado Springs isn’t just home to new residential homes, retail and big name corporations are also moving in. Our beloved city’s new residents have the opportunity to fill roles within the Space Force at Peterson Air Force Base, the Amazon Prime Warehouse, and with Southwest Airlines as these major organizations begin calling the Springs home in 2021. The local and state economies will reap the benefits as more money is poured into the city through residential and commercial real estate transactions, and thousands of newly created jobs.

What does this mean for you? Now is the time to buy a home. The influx of major organizations and people has increased the demand for housing and inevitably raised the value of Colorado Springs Real Estate. This is just the beginning, and you don’t want to miss out. Real Estate will continue to be a driving force in our economy, and you too can reap the benefits.

As you can imagine, the market is highly competitive. Now more than ever, it is imperative that you have the best Real Estate Team serving you. Fortunately, you have us, The Lana Rodriguez Group (LRG) at your side to combat this challenging environment. LRG is among the Top 5 Real Estate Teams in the Pikes Peak Region. This organization is ran by Real Estate Professionals and Veteran Business Owners who specialize in the buying and selling of both residential and commercial Real Estate for the entire Pikes Peak Region. We find the best home to fit your needs, while creating effective strategies for all types of opportunities and developments.

Don’t wait, act now and contact Bryan Rodriguez to discuss your Real Estate Strategy!