Housing Starts: Good or Bad?

By
Real Estate Broker/Owner with Fortune International Realty

Is the so-called “dead” housing market in South Florida necessarily a bad thing? On the one hand, a drop in new housing construction can be construed as there being little to no activity going on in the Miami Beach condos market. But then again, wasn’t this surge in housing one of the [many] reasons that lead to the housing market woes in the first place?

New housing projects were few towards the beginning of 2009, a factor that has many people saying the market is essentially “dead”. However, this drop is also seen as a sort of blessing in disguise. A drop in housing starts allows more people—namely first time buyers—to purchase the excess of Miami Beach condos up for sale on an already overcrowded market.

Such a situation does have its drawbacks, specifically the drop in employment as builders lay off workers due to the lack of activity which further contributes to an already difficult job market. At least for the time being, little building activity may actually be a good thing.

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