What Is The Trend Of Our Future, And How Are We Preparing For The Growth That Is Coming?
Builders are America’s greatest gamblers and they live only for the future! They accept all the risk. They go where no one has gone before and create something from nothing. On a national level, builders are not always rewarded for their pioneering spirit, as shown by the chart of Home Sales Activity and New Housing Starts, below.
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HOME SALE ACTIVITY
Existing and New Homes, Housing Starts
|
Existing Home Sales |
% Change |
New Home Sales |
% Change |
Housing Starts |
% Change |
1988 |
3,510,000 |
2.2 |
674,000 |
0.8 |
1,488,000 |
-8.7 |
1989 |
3,349,000 |
-4.6 |
653,000 |
-3.1 |
1,382,000 |
-7.1 |
1990 |
3,226,000 |
-3.7 |
533,000 |
-18.4 |
1,203,000 |
-12.9 |
1991 |
3,167,000 |
-1.8 |
509,000 |
-4.4 |
1,009,000 |
-16.2 |
1992 |
3,473,000 |
9.7 |
614,000 |
20.5 |
1,201,000 |
19.1 |
1993 |
3,778,000 |
8.8 |
674,000 |
9.9 |
1,292,000 |
7.5 |
1994 |
3,926,000 |
3.9 |
667,000 |
-1.1 |
1,446,000 |
12.0 |
1995 |
3,882,000 |
-1.1 |
670,000 |
0.3 |
1,361,000 |
-5.9 |
1996 |
4,179,000 |
7.7 |
756,000 |
12.9 |
1,469,000 |
7.9 |
1997 |
4,390,000 |
5.0 |
806,000 |
6.7 |
1,475,000 |
0.4 |
1998 |
4,963,000 |
13.1 |
889,000 |
10.3 |
1,621,000 |
9.9 |
1999 |
5,193,000 |
4.6 |
879,000 |
-1.2 |
1,647,000 |
1.6 |
2000 |
5,158,000 |
-0.7 |
880,000 |
0.2 |
1,573,000 |
-4.5 |
2001 |
5,290,000 |
2.6 |
907,000 |
3.1 |
1,601,000 |
1.8 |
2002 |
5,593,000 |
5.7 |
977,000 |
7.7 |
1,711,000 |
6.9 |
2003 |
6,098,000 |
9.0 |
1,087,000 |
11.3 |
1,848,000 |
8.0 |
2004 |
6,540,000 |
7.2 |
1,170,000 |
7.6 |
1,934,000 |
4.6 |
The negative numbers show the years with losses. Look at the performance of existing home sales vs. the New Housing Starts sales. Remember that the real estate industry -- including new builder developments, mortgages lenders, title and escrow business, and resale real estate -- controls 54% of our gross national product. This is America’s biggest industry. It is our biggest asset and produces more income tax revenue than all other industries combined with the exception of personal income tax. Builders accept all the risk in order to develop new locations to provide shelter to our growing population.
