Renovation Run

By Econ70 | 04/29/2013

Despite residential construction being on the mend, its contribution to GDP is tiny. During Q1 2013, the value of new single family construction was just $157 billion, or 0.98% of GDP, while residential improvements contributed $161 billion or 1%. This was the 18th straight quarter where spending on improvements exceeded new single family construction! All…

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Affordable Foreclosures

By Econ70 | 04/28/2011

A key reason why new home activity has fallen off sharply is because new homes are now about 30% more expensive than existing ones; double the typical margin. Foreclosures and short sales accounted for 40% of all sales in February ’11 compared to just 25% in ’10. Moreover, some builders in hard hit spots continue…

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