The housing market took one of the biggest hits after the 2008 recession, and it has certainly been a long and tentative road to recovery for American homebuilders. Now referred to as the Great Recession, an economic crisis was brought on in the United States by a variety of factors and eventually led to a global recession. One of the factors contributing to the problems was the popping of the real estate bubble, which led to many homeowners having a mortgage debt that was higher than the current value of their property. This sparked another issue when it came to construction and new homebuilding because most Americans were simply not in the financial position to purchase a new home. Renting rates and apartment building occupancy jumped in this time period.
The housing market rebound hasn’t been a clear or easy path, but new home starts and construction activity have been making a steady recovery in recent months. More home buyers means more construction work for unemployed Americans and for all the companies involved in building new homes and housing developments. Many experts believe a sustained recovery is likely for 2014. Rising mortgage rates have recently slowed the growth, but it is growth none-the-less. Two homebuilding giants, Lennar and KB Home, reported significant profits in their most recent earnings report, showing solid signs of a sustainable future in the construction industry. Though there is still much work to be done and progress has been slow, the outlook is optimistic for new construction projects.