Atlanta Residential Investment
2) Residential Investment: Last year was the first time Residential investment (RI) made a positive contribution to GDP since 2005. RI consists of investment in new single family structures, multifamily structures, home improvement and commissions on existing home sales. RI is a leading indicator for the economy. It is expected that RI will be modest in 2012, how much will it increase?
Most experts in the housing industry expect residential investment to increase in the united states.
See marketwatch’s thoughts here
The reason for this optimism is that as homes hit an all time low in prices, people who can get mortgages will start to buy homes again. This open up lots of opportunity for investors.
Looking back to 2011 we see that RI has increased. I expect this trend to continue into 2012.
However, this all depends on the strengthening of the economy and housing market, which has been anything but predictable.
As long as jobs continue to increase I expect RI to top last years highs.