Homebuilders Shares are up to Historical Levels in Miami and across the United States

July 27, 2012

According to the S&P, homebuilders Lennar is up 54 percent, D.R. Horton’s is up 48 percent, and luxury home builders Toll Brothers is up 48 percent. This is close to eight times the gain of the S&P 500 index.

According to David Dwyer of Bloomberg Industries, the pace of new construction in the United States is less than half of the 20-year average household growth of 1.2 million. We lose another 300,000 homes every year due to natural disasters and demolition, Dwyer said.   

In order to keep up with the pace of population growth in this country builders are going to have to increase the construction of single-family homes and condominiums soon. This is good news for builders, home owners and real estate brokers from Palm Beach to Miami. Senior citizens are living longer than ever before as well. So, we will be in need of more housing due to population growth and longer life spans.

We are seeing an increase of houses built with mother-in-law suites in Miami and Palm Beach, by Toll Brothers and Lennar. Miami is also seeing an increase of construction of luxury oceanfront condos due to a lack of inventory. This may be only the beginning of new luxury condos and luxury single family home construction in Miami and Palm Beach.

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