New Home Sales Reach Highest Level in 14 Years, New Construction Still Lagging Behind Demand
According to a recent report from the U.S. Census Bureau, sales of new homes in the U.S. unexpectedly advanced for a fourth month in August to the highest level in almost 14 years. Single-family housing starts rose slightly in August, up about 12% annually. However, construction is still lagging behind demand due to labor shortages, permitting delays, and weak productivity in the sector.
Brendan Lowney, Principal at Forest Economic Advisors, said the forest products industry can expect continued rise in demand based on current market trends.
“We estimate the underlying demand for housing based on demographic factors is about 1.5 million housing starts,” Lowney said. “Our current housing stock is old and small, and there is a big upsurge of millennials who are reaching their prime home buying years. We’re very optimistic about the near and medium term for housing starts, which are a huge component of wood products demand. The forest products industry should be heartened by that fact.”
FOREST ECONOMIC ADVISORS: Home Listing for New Construction Dropped 4% in August →
BLOOMBERG: New-Home Sales Climb to 1 Million Rate, Fastest Since 2006 →
CNBC: New home sales crush expectations, but the supply is running out →
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Georgia Foresters’ Hall of Fame Nominations Due Nov. 15
The Georgia Division of the Society of American Foresters is currently seeking nominations for the Georgia Foresters’ Hall of Fame, which honors individuals who have made outstanding contributions to the forestry profession in Georgia. Learn about the award and the nomination criteria by visiting eforester.org/Georgia.
Market Indicators and Other Headlines
- The Forest Resources Association has developed new fact sheets that show the role of forestland in sequestering and storing carbon.
- National Fish and Wildlife Foundation announces $5.6 million in grants to advance longleaf pine habitat and support wildlife in eight southeast states, including Georgia.
- Construction of a 25-story mass timber building is underway in downtown Milwaukee. When completed, it will be the tallest mass timber building in the world.
- Perdue has found the right path in National Forests.
- GFA Member Amanda Lang of Forisk Consulting was recently featured on the Talking Forests podcast.
- Printer and printing solutions company HP has pledged to plant one million trees by the end of 2020.
Upcoming Events
- October 2
UGA Warnell School of Forestry & Natural Resources Parker Memorial Golf Tournament
Athens, GA - October 7
Wood Construction Applications in Industrial and Warehouse Facilities
Virtual Event - October 13
Warnell Continuing Education: Forestry Herbicide Update Workshop
Virtual Event - October 22
Georgia Division SAF Virtual Outreach Meeting
Virtual Event - November 6
Coastal Pines Technical College Logger/Forester Continuing Education Classes
Waycross, GA - November 19
Warnell Continuing Education: Timber Taxation Workshop
Virtual Event - December 8
Forisk Consulting Wood Flows & Cash Flows Conference
Virtual Event
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