Honolulu Real Estate Pace Could Pick Up…Quickly!

January 27th, 2009 categories: The Market

I read an excellent article at Forbes.com that leads me to believe that a turn in the National economy and, therefore, the Honolulu real estate market may be closer than we think.

“U.S., according to the Census Bureau. In December, the latest data available, home builders started houses at a 550,000 annual rate. In other words, at the current pace of housing starts, it would take 236 years to replace all the homes in the U.S.

To put this in perspective, homes are normally built at a pace that would replace the existing stock of houses every 75 years. Unless you can imagine everyone living in Thomas Jefferson’s Monticello–first lived in 239 years ago–this is impossible to sustain.

Assuming we eventually get back to the normal “replacement rate” of 75 years, housing starts will have to go up to 1.75 million, a dramatic climb from the current 550,000 pace.”
CLICK HERE TO READ THE FORBES ARTICLE

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This entry was posted on Tuesday, January 27th, 2009 at 11:32 am and is filed under The Market. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.