In their 2010 new-home construction forecast, three economists at the National Association of Home Builders’ annual conference said they expect a boost in construction ranging from a national total of 675,000 to 770,000 single- and multifamily units. For 2009, the final new-home-construction number is expected to be near 555,000.
Longtime San Diego-area builder Bill Davidson said he’s waiting for a demonstrable local recovery to get more traction. “It’s all about jobs,” he said. Davidson, a builder of high-end homes, said his part of the market “is not dead. But it takes a lot of effort to secure financing for buyers” in the two projects he’s marketing.
Most activity is for lower-priced houses, attracting first-time buyers and investors who are jumping in for bargains, said Davidson, president of Davidson Communities and a former president of the local Building Industry Association. He noted that San Diego builders, having been burned in earlier downturns, “cut-off the new-home supply very quickly” during the latest downturn. Because there’s a limited new-home inventory, he’s hoping to jump in quickly when the market rebounds. That requires builders to have land in hand and governmental permits ready to go.
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