Contractor Insurance: State of the Housing Industry

Contractor Insurance: State of the Housing Industry

Why are your kids still living with you? Kick them out! Whether you know it or not, you are causing the housing market to suffer. Every year thousands of housing industry professionals meet in Florida for the International Builders’ Convention and one keynote speaker is the speech that everyone wants to here.

One of the biggest attractions for the International Builders’ Convention is NAHB’s Chief Economist, David Crowe. As this is a sensitive topic, economists chose their words wisely. After missing last year’s prediction, Crowe, joined with two other economists gave their cautiously optimistic prediction of 2012 being the housing boom year for single-family starts. This 16% improvement is related to key economic performance factors, such as: GDP growth, unemployment rate, private-sector job-creation, and consumer sentiment.

Mr. Nothaft, of government-sponsored mortgage giant Freddie Mac opened his speech pointing out the affordability. “If I put this affordability into a model, I would have home sales through the roof! But as we know, they’re not through the roof,” he said. The main reason this is the serious “headwinds” facing the industry, including an elapsed consumer confidence, and a high jobless rate. The good news, though, is that “in the first half of 2012 we’ll see a lot of the [unsold] inventory bottom out.”

Mr. Berson, of PMI Group, also focused on household formation as a key number to watch in 2012.

  • An average of about 1.1 to 1.2 million housing starts per year over the next 10 years — which would be close to what economists consider a “healthy” level of construction — minimal growth in second and vacation homes
  • Between 2007 and 2011, the number of households that are “doubled up,” or have grown children or other potential household heads living with their relatives in the same house, grew from 20 million to 22 million.
  • About 6 million young adults aged 25-34 are living with their parents.

With great predictions in the future, Advantage Insurance understands the risks you take as a contractor or builder. Over the years, we’ve worked with many Maryland contracting firms in their quest for strong construction or contractor insurance. That experience and an unwavering dedication to quality service has greatly enhanced our knowledge of the construction industry and our product offering.

Let one of Newman Crane’s expert agents create a plan uniquely tailored to your operation. Our knowledgeable, highly trained insurance professionals will help you find a policy that meets your requirements…at a price you can afford. Call our Orlando, Florida insurance office today at 877.874.4673

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