“All signs point to a housing recovery that will continue into the near future. In particular, the increase in applications for building permits, which points to future construction activity, indicates steady activity in the construction sector.”
Pasadena, CA (PRWEB) January 24, 2013
The Commerce Department recently released December’s figures for new residential construction. Privately-owned building permits, housing starts, and housing completions were all up over the previous month’s numbers, pointing to a strong, continued recovery in the building sector. These industry trends mirror hiring data in the real estate and construction sector on Granted.com.
In a recent report, the Commerce Department released the latest figures on residential construction and home-building for December. Privately-owned housing starts were at a seasonally adjusted annual rate of 954,000, or 12.1 percent above the previous month. Privately-owned residential building permits were at a seasonally adjusted annual rate of 903,000, and housing completions were at 686,000. An estimated 651,400 housing units were built in 2012, an 11.4 percent increase above the housing completions for 2011. December’s figures were far above the anticipated levels, and, taken together, the Census report painted a picture of not only a growing residential construction sector, but a thriving real estate market. All signs point to a recovery that will continue into the near future. In particular, the increase in applications for building permits, which points to future construction activity, indicates steady activity in the construction sector.
The current vitality of the housing market is a far cry from a few years ago, when sales were down in the midst of a deep recession. It was a trickle-down effect that rapidly swept into all aspects of the market, from real estate brokers and lawyers to home builders. Construction companies saw a precipitous drop in nearly all residential and commercial building projects; there simply was no demand.
Now, in a similar fashion, the housing recovery has kicked off the recovery of related markets. Construction companies that have been desperate for business in the past few years are now being flooded with orders. This new spike in demand can be attributed in part to both historically-low mortgage rates and pent-up consumer demand leftover from the recession.
In another signal to a healthier housing market, hiring has been steady for jobs in real estate and construction. During the recession, many individuals once employed in real estate or construction lost their jobs and moved to other industries. As a result, there is now a void in the current labor market for more experienced and mid-level real estate attorneys and real estate brokers. Professionals who managed to stay in real estate during the economic recession will now find their skills and experience to be highly in demand. On the construction end, there is a real concern by industry representatives that current employment for skilled labor will not be able to meet anticipated demand.
These hiring trends have been reflected by jobs data on Granted.com, a leading job site. As of January 21, there were 9,055 jobs in real estate and 1,046 jobs in construction listed on the site. Particularly telling was the fact that a large number of listings were for construction estimators jobs; 1,025 jobs for construction estimators were listed at the time this release was written. Because budget is often a first concern for potential clients, requests for residential and commercial building estimates can be seen as a gauge of client interest and an approximation of future construction activity. The fact that hiring is strong for construction estimators indicates that more clients are requesting construction estimates than the current workforce can handle. This is a positive sign that anticipated construction for 2013 is also high.
Granted.com is a job search site based in Pasadena, CA. It’s a part of the Employment Research Institute and owned by A. Harrison Barnes.