Biggest source of concern for builders:
Builders are especially concerned about the availability of general liability insurance. Land prices are also an issue. And north of Jackson, where the huge Nissan plant just opened — that area has imposed growth restrictions.
Those restrictions are going to drive development into the other two counties in our metro area, which have traditionally had more growth and therefore have more land availability issues. So the concern is that the affordability of starter homes in the area will suffer — and that families trying to buy their first home will be priced out of the market.
Market trends:
Because of the Nissan plant, 1,500-2,200 square-foot homes are very hot. They are the market mainstay for builders. This trend should get even stronger over the next five years.
Looking at other areas like ours, where a big plant has opened, the real growth in homes in the 2,000-square-foot range seems to happen after the first year or year-and-a-half. Initially many of the people getting jobs at the plant will commute from their current residences, which could be an hour or more away. After that, they’ll start planning to move their families. So we’re just very optimistic looking forward.
Also, in the current marketplace, remodeling is running very strong right now.
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