Southern Crescent Office Market Conditions
02/20/2012 in Ask An ALC
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by Wood Hughes
by Wood Hughes
Metro Area New Home Prices
02/20/2012 in Economic Outlook
The U.S. Census Bureau regularly tracks new home prices for the United States, Census Regions and Divisions. However, there is no systematic measurement of new home prices by states or metropolitan areas. To fill the void, NAHB Economics periodically estimates median new home prices for metropolitan areas. The most recent estimates show that median new home prices range from less than $110,000 in Beaumont-Port Arthur, TX to more than $845,000 in Bridgeport-Stamford-Norwalk, CT (Table 1). The map below helps visualize the wide cross-country differences and reveals a familiar geographic pattern with most expensive new homes clustered in the coastal areas of California, Hawaii and the Northeast region. The least expensive new homes are concentrated in Texas and the center of the United States.
To estimate median new home prices by metro NAHB Economics relies on data reported by the 2010 Census Bureau’s Building Permits Survey and Survey of Construction (SOC). The Permits Survey provides both the number and aggregate value of new housing units authorized by building permits and, thus, allows calculating average permit values for all metro areas. However, permit values do not include brokerage commissions, marketing/finance costs and may not include the cost of raw land. These additional costs are likely to differ across geographic areas but not available for metro areas. To account for these additional costs, NAHB Economics estimates ratios of median new home prices to average permit value for nine Census divisions available in the SOC and then uses the division-wide ratios to convert metro average permit values into median new home prices.
by Wood Hughes
Growing Strength for Housing in 2012
02/20/2012 in Economic Outlook
Final data for 2011 confirms that single-family home sales marked their worst year on record, totaling 302,000 for the year. Total private residential construction spending, including home improvement expenditures, was down more than 1% compared to 2010.
Despite these year-end statistics, other key economic indicators suggest growth for housing and home building in 2012.
For the economy as a whole, fourth-quarter GDP growth was estimated at 2.8%, up from the weak rate of 1.8% in the third quarter of 2011. In January, total payroll employment increased by 243,000, causing the unemployment rate to decline to 8.3%.
Construction firms saw increased business activity in their futures, with 2011 the first year since 2006 when total hires exceeded total job separations for the industry. And NAHB’s Remodeling Market Index achieved a level of 46.6 in the fourth quarter of 2011, the highest mark since 2006.
As the new year began, NAHB published research and analysis on several topics of interest to home builders and remodelers.
NAHB economists updated the “priced out” model, which estimates the number of households that are unable to purchase a new home when prices increase due to regulatory costs and other burdens.
Economists also examined the distribution of new home prices across metropolitan areas.
A quarterly survey of remodelers found windows to be the most popular energy-efficient property installed with respect to home improvement projects.
And finally, NAHB analysis noted the aging of the owner-occupied housing stock, with the average age of owned homes standing at 34 years old in 2009, a full 11 years older than the measure taken in 1985.
by Wood Hughes
New interstate proposed for Middle Georgia
02/20/2012 in Development News
Atlanta Business Chronicle by Carla Caldwell, Morning Call Editor Tuesday, February 14, 2012, 5:34am EST
A new federal study includes a possible $7.7 billion interstate route from Augusta, Ga., to Natchez, Miss., reports the Macon Telegraph.
The report, obtained by The Telegraph under the Freedom of Information Act, includes the prospect of an interstate highway cutting through the center of Byron. The roadway would connect with Interstate 75.
Funding for the federal route has not been identified. The study was done by the Federal Highway Administration to meet a congressional mandate.
The federal route includes an area being studied by state officials in the Connect Central Georgia study, which seeks to better connect Columbus, Macon and Augusta, the newspaper reported.
by Wood Hughes
Ga. Power says solar plan infringes on territory
02/20/2012 in Spit & Whittle
Atlanta Business Chronicle by Carla Caldwell, Morning Call Editor Monday, February 20, 2012, 6:23am EST
Georgia Power says a Georgia Senate proposal that would allow private property owners and businesses in the state to buy solar panels and power from a third party would illegally infringe on the company’s territory and drive up rates for customers, reports the Associated Press.
Supporters of Senate Bill 401 say it promotes renewable energy options, supports private property rights and is good for power consumers, AP reported.
The bill has been assigned to a committee, but has not yet gotten a hearing.
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What do you think of this? Is it right to allow Georgia Power to keep a monopoly on all forms of electrical generation, all the while extorting the free market while charging power users IN ADVANCE for the costs of building a nuclear generator?
Land broker friends of mine out west are raving over the increase in ranch land values because of the capability of harvesting wind power from it. Here in Georgia, the sun offers us a opportunity to harvest income from solar energy drawn from otherwise low productive areas of our land.
True, the technology isn’t at the break even point yet, but with the ever increasing uncertainty of our oil supply, it may soon be. Do you want to give up your ability to make money off of your land to Georgia Power?
by Wood Hughes
