Rehabbing for HUD: Thanks to the U.S. Department of Housing and Urban Development’s new Neighborhood Stabilization Program, areas flooded with abandoned and foreclosed homes may offer builders plentiful work opportunities. In an effort to stabilize neighborhoods and regenerate blighted communities, HUD is providing emergency assistance to state and local governments for the acquisition and redevelopment of foreclosed and abandoned properties. The law prohibits earning profits from the sale of the rehabilitated properties, but as Nation’s Building News Online reports, builders could earn developer fees under the program. Read more.
A Housing Economics Lesson: Housing starts keep dropping. Though that sounds like more cause for panic, it’s actually a good sign that the market is regaining equilibrium, according to a New York Times article. Read more for a lesson on supply and demand, and a common-sense prediction of when to expect construction to pick up.
Good Idea/Bad Idea: Policymakers and economists urging mortgage modifications for millions of homeowners at risk of foreclosure see the plan as a means for stabilizing the housing market. But rewriting loan terms may not be the best solution, and in fact can put many homeowners at even greater risk of foreclosure down the road, according to a Time magazine article. Weak housing markets and a failing lending industry may play an important role in the nation’s current financial crisis, but it is only one of the issues putting more pressure on homeowners. Read more.
Preparing For the Future: As baby boomers age, their need for homes that accommodate their changing abilities will grow, too. Custom builders and remodelers with boomer clients can build long-term value and accessibility into projects by assessing both current and future needs. The NAHB and AARP both offer useful resources for understanding this age group. Read more.
