2006 Housing Development Industry Trends to Consider

With the slowing and plateauing of the real estate market we are seeing some big changes in the New Housing Development markets in many areas. The fastest growing areas of 2005 are not currently breaking any speed records like they once were. This leaves many developers on semi-retirement until the next housing boom, lets say in 8-10 years. Meanwhile new housing builders who are still building are in areas where there is demand, in micro markets untypical to the over all trends. All this as interest rates continue to climb throughout the first two quarters and perhaps further in 2006.

In 2006 we can expect many new things in the housing building market. One positive thing is we will see a dwindling of mold lawsuits and case law against such frivolous attacks on the housing industry. The lawyers have so abused these cases and extorted millions from honest builders that the courts are going to make these cases more difficult to win for attackers of the housing industry.

We will see more new materials being introduced, which will be more energy efficient, stronger and longer lasting, specifically in the disaster zones of Earthquake and near coastline Hurricane Zones. The building industry will see changes too as illegal immigration is tackled and the labor at that level of worker becomes tighter. Yet we will also see a residential housing stoppage in most regions so this issue is not as critical. It will be in commercial centers near all these new developments and housing tracts build in 2003-2005, expect some growth there in some regions.

We will see gated communities take premium for housing prices and hold their value better than single-family dwellings in normal housing tracts as the Iran war gets underway and the conflict with Syria shows anti-American violence and demonstrations on Television. Mexican illegal immigrants lined up at the border trying to get in from civil unrest, natural disasters and to earn a better life and send money back home will also be displayed for the world to see on and on national Television making families rethink their need for protection and bring them closer to their homes. Gated communities will definitely be the in thing and we may see more suburban flight in large sprawling cities to areas of the country perceived to be safe. Those developers building gated communities, with neighborhood watch programs built in, will do the best even in the flat market with interest rates rising. Think on this in 2006.

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