Utah’s Housing Industry Is Thriving
Keep building houses! That was the message internationally acclaimed economist Eliot Eisenberg recently told a full-capacity room of members of the Utah Valley Home Builders Association. “It’s what keeps housing affordable.”
A former Senior Economist with the National Home Builders Association, Eisenberg praised Utah for its economic stability. “Utah’s population growth is the fifth fastest growing stat in the nation.”That contributes to the need of more homes.
With employment levels the lowest they have been in fifty years, the overall economy is good. Although Eisenburg predicts it won’t last much longer. He sees a mild recession coming soon.
Some indicators he pointed out were some slowing trends in 2018. “Existing home sales have plateaued; the inventory is too small and houses are too expensive,”Eisenberg explained. “Refinancing activity is declining.”
Given this climate, home improvement and repairs are on the rise. Factors that contribute to this increase include low interest rates, lack of inventory and good equity. Adding a little humor he added, “It’s like that song by Crosby, Stills and Nash, ‘Love the One You’re With.’”People are improving the place they already own.
Eisenberg also pointed out other industries on the rise such as cruise passenger growth, hotel occupancy and steady vehicle sales. Manufacturing is down and RV sales are slipping some as well. “Overall, We are okay,”he encouraged members.
“Elliot is one of our most popular guests to come speak to us,”remarked Amber Duffin, director of events for the UVHBA. “I have already scheduled him for next year. He has repeatedly come to Utah to speak to our members for five years now.”
An established authority on the national and global economy and its impact on various industries such as homebuilding, tourism and consequences of government regulation, Eisenberg studied at Syracuse University and lives in Washington, DC. His website is www.econ70.com.