Thank you to panelists Stephen Malpezzi (Professor of Real Estate & Urban Land Economics, University of Wisconsin), Peter Tremulis (Vice President, Pulte Group, Inc.), Charles Young (Regional Director, Waypoint Homes) and to moderator Theresa Frankiewicz (Vice President, Crown Community Development) for sharing their insights at ULI’s November 14, 2012 breakfast panel on the recovery of the housing sector.
Although we are approaching 800,000 annual housing starts, we are unlikely to return to the prior peak level of 2 million starts achieved in 2006. However, the panelists did expect that the improvement of the economy – combined with household formation, declining inventories and low interest rates – will likely provide for a slow but sustainable rebound in housing prices. Pulte Homes recently sold 38 units in 10 weeks at its new for-sale development in Glenview. Waypoint Homes has embarked on the strategy of purchasing and renovating single-family homes and then operating them as rental properties with a target hold period of 5-7 years. Real estate professionals across all property sectors will be keeping a close watch on the nascent recovery of the housing sector, which has a disproportionately powerful influence on the health of consumer spending and GDP growth.