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The housing market is shaped by numerous factors including population growth, household formations, and the existing housing stock. Key issues include foreclosure rates, housing obsolescence, and apartment occupancy levels. With significant numbers of serious delinquencies and foreclosures (over 2.3 million), combined with a projected industry growth of 73% from 2012 to 2016, the outlook for the housing market is complex. The estimated demand for new HUD units highlights the recovery trajectory, indicating varied market dynamics expected in 2015 and 2016.
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FACTORS EFFECTING DEMAND POPULATION GROWTH HOUSEHOLD FORMATIONS EXISTING HOUSING OBSOLESCENCE FORECLOSURE OVERHANG NEW JOBS APARTMENT OCCUPANCY INTEREST RATES
FORECLOSURE OVERHANG Serious delinquent 5,000,000 1,360,000 1,061,000 -22% Foreclosure 2,350,000 1,400,000 939,000 -33%
What’s the Industry Outlook for ‘15 & ‘16??? 2015 – 85,000 HUD Units 2016 – 95,000 HUD Units From 2012 – 2016 Industry Growth of 73%