Housing Material And Lumber – Where Are We Headed?
Housing Material – There have been articles lately that emphasizes the possibility of a severe housing shortage next year, as new home supply dwindles and the bargains in foreclosures evaporate. I often read that housing will not improve until employment improves. An interesting conundrum, since in past recessions, employment increased during housing recoveries. I don’t think that most people, even economists, think through the relationships involved in new home construction. So, which came first, the chicken or the egg?
After construction of new homes continues, it will trigger the creation of new jobs when construction workers return to work. How will this affect national homebuilders such as Beazer, Pulte, and Hovnanian? What about manufacturing jobs made for wood, building materials and products such as roofs, doors and windows? Not to mention electrical and pipe materials and equipment.
Taking a step further, what about the technology that enters a new home? Most people will buy new widescreen TVs, sophisticated sound systems, and computers and printers for their home offices. Many wood mills and panels have been restricted, closed and even demolished or converted into Biomass Power Plants. Increased construction of new homes…