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Permits Rising in Markets that Missed the Housing Boom
Housing permits fell to a 1.178 million annual pace in October 2007, about half of the peak number of permits in January 2006. However, 114 metro areas averaged more permits in the last three months than at the peak of the housing boom nearly two years ago. Today’s 20 hottest housing markets are neither resort nor retirement destinations. Instead, they have a dominant position in high growth industries: aircraft, oil, hurricane rebuilding, electronics technology, metals, farming and capital machinery exports.
Pittsburgh is Making Less Steel, But its Economy is Still Strong
Despite suffering a severe pull back in housing demand that has caused residential construction to stall, the Pittsburg economy appears to be in relatively good health. This observation is based on the fact that the unemployment rate in the metro area, at 4.0%, is the lowest it has been since the end of 1999.After being driven by its manufacturing sector for over a hundred years, the service sector has gradually become the dominant source of new jobs. Moreover, these new service-sector jobs pay quite well.
Plans for New Royalty Regime may Tax Alberta’s Economy in 2009
As the Alberta economy heads into 2008, it is clearly growing above its long-term production potential. The province’s unemployment rate is currently at a low 3.4%. Commercial construction should continue to exhibit solid growth in 2008, but deteriorating home-ownership affordability and a slowdown in net migration to the province will slow residential construction. As for energy investment, the new royalty regime is a sign that the province is not as energy investment friendly as it once was.
Public Construction Boom Set to Ebb
Four years of accelerating growth in public construction spending is terminating at the end of 2007, at the same time that the steep two-year plunge (due to weak residential markets) in private construction spending is reversing. The precipitating event in the public sector is the cautious state and local government budgets for the 2007-08 fiscal year. The growth of public construction spending will peak at 12.2% in the 2007 calendar year, slip to 8.2% in 2008 and slip further to 7.3% in 2009.
Rainwater Collection Systems
All green building designs must minimize the amount of runoff from impervious surfaces on a property.
Recession in the U.S. is Avoidable
According to the accompanying table and graph, North America’s major stock markets have not given up on the U.S. economy yet, despite all the talk in the media about a possible upcoming recession. The major indices are down a little (-6.0% to -7.0% from 52-week highs), but not a lot, and they remain +5.0% to +10.0% ahead of year-ago levels. While a number of leading economic indicators are pointing to a weakening of U.S. economic growth, there are still many reasons to be optimistic.
Reducing Energy Use in Buildings
Reducing energy use in buildings saves resources and money while reducing pollution and CO2 in the atmosphere.
Resort and Retirement Markets Still the Leaders in Housing Intensity
Resort/retirement markets hold ten of the top twenty spots in the list of markets with the most intense housing development, even with housing starts slowing sharply in many of these cities in recent months. In addition, two hurricane-rebuilding markets are on the list, Gulfport-Biloxi and Houston. Completing the list are four large and four small “business or college” cities. Each is attracting jobs with low living, business and housing costs.
Roofing Considerations in Green Building
Roof design has made major strides where sustainability is concerned
Round Two of the Mortgage Mess
Investors are experiencing an aftershock late in October and in early November from the unexpectedly high magnitude of financial market losses on residential mortgages, even though they quickly got past the July jolt when they abruptly realized that subprime mortgages were not worth as much as they paid for them. Reed Construction Data has slightly reduced the construction spending forecast for the end of 2007, but most of the impact will be felt in 2008.
