Friday, October 21, 2011

Home Building Jumps 15 Percent in September

September was a good month for home builders who started new projects at the fastest pace in over a year. This shows to be a promising sign for the economy.

Volatile apartment construction has been a driving force for most of the gain. Although this could encourage economic growth and create more jobs, it doesn't necessarily mean that the housing market is coming out of its slump. According to the National Association for Home Builders, for every home that is built, an average of three jobs is created for the year and about $90,000 in tax revenue.

Despite the jump in home building, builders with low collateral are struggling to compete with foreclosures and short sales.  Consumers find it is a better deal to buy a previously occupied home rather than a new home by at least 30%. Plus, many Americans who have lost their jobs have been forced to move into apartments and abandon their homes, continuing the vicious cycle.

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