At Bayside, we appreciate the value of new home construction and its importance to the economy. We’re proud to offer beautiful new construction homes from award-winning builders – NVHomes, Schell Brothers, Echelon Custom Homes and Marnie Custom Beach Homes – in a variety of styles and prices. Since Bayside is community featuring new homes, positive news about the home construction industry is always encouraging, and the Associated Press (AP) recently reported great news concerning the industry. According to information from the Commerce Department, the pace of home construction in November hit the highest pace in over five years. Perhaps most exciting is the fact that this is the fastest pace since February 2008, a few months before the recession began.
AP reports that in November, developers began construction on housing and apartments at a rate 23 percent higher than the home construction pace in October. The seasonally adjusted annual rate for November was 1.09 million, according to information from the Commerce Department.
The pace of single-family new home construction is also at its highest in more than five years, increasing 21 percent to annual pace of 727,000. The number of permits for future building of single-family homes also increased, another positive reflection of the housing market and overall economy. This is more great news for communities that offer new construction single-family homes, such as Bayside – though our community also offers townhomes and villa-style duplexes.
This high pace of home construction is a strong indicator of a recovering housing market, according to AP, and additional good news in the field is that home builders continue to have increased confidence. In December, builder confidence for newly built, single-family homes increased four points on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The scores for the three index components for the HMI – current sales conditions, sales expectations and traffic of prospective buyers – all posted gains in December.
While new homes represent only a small percentage of the housing market, they have a disproportionate impact on the economy. According to statistics from the National Association of Home Builders (NAHB), home construction has a direct and positive impact on national and local economies in various ways, including:
- Increased jobs – for each single-family home built, NAHB estimates that three jobs are created.
- Supports the national manufacturing industry – most of the products used in home construction are made in the United States.
- Supports local communities – home construction increases the property tax base, which generates revenue supporting local schools and communities.
- Increased revenue – NAHB estimates that each new single-family home built generates $90,000 in government revenue.
All of this great news about the home construction industry is certainly exciting for communities with new homes, such as Bayside, and we hope that the positive trends continue into the new year. Our beautiful new homes in Bayside are just a part of the reason our community is such a wonderful place to own a home. Just ask our residents, who enjoy the Jack Nicklaus Signature golf course, top-notch recreation opportunities, incredible nature trails and an ideal location in Fenwick Island in addition to their luxurious beach homes. Though there may be Delaware beach homes for sale all across Sussex County, our Bayside community truly gives our residents an experience like no other.