Tuesday, September 13, 2005
The effect of Hurricane Katrina will spread across the U.S. housing market and economy, the National Association of Realtors stated in an announcement today.
Demand for housing in regions surrounding the disaster area caused a spike in apartment, manufactured homes, and houses rentals.
Chief economist for the NAR David Lereah said "Given the general tight inventory of homes available for sale across the country, rebuilding in the region of the Gulf Coast will place additional pressure on overall home prices. As displaced residents try to get back on their feet in new locations, home sales have spiked - along with rental demand - in regions surrounding the disaster zone. "
Hurricane Drives up Real Estate Construction Costs
Lereah also said shortages of building materials, made worse by the need to rebuild in areas hit by Katrina, will increase construction costs.
NAR president Al Mansell said "Housing construction will be insufficient to replace the number of homes destroyed or that will have to be demolished. Apartment vacancies are dwindling and mobile homes will help to address the jump in housing needs."
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