A good article in Inside Real Estate News about recent report by the Homebuilder’s Association on Building Permits and the impact of flooding on demand for housing.
Some key comments from the article:
“There is still a lot of pent-up demand in the metro area,” August added.
He said more permits would have been pulled except that “developers can’t deliver completed lots fast enough.”
One recent projection called for 7,500 new homes to be delivered this year, but because of the lack of lots only 6,500 are likely to be completed, August said.
The flooding in northern Colorado and elsewhere will make it even more difficult to meet the demand for housing, August said.
“First, the flooding was a true tragedy,” August said.
“Builders couldn’t meet the demand before these Biblical rains fell,” August said. “Now, we are going to have this 20,000-house impact to the market.”
The flooding will add to the demand for new homes through next year and builders will do all they can to try to react, but it will be a daunting task, he said.
“There already is a shortage of finished lots, labor and raw materials,” August said. “With the damages and destroyed homes from the flooding, it is going to exacerbate the problem.”