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An all-American house built in Bozeman, Montana
One man in Bozeman, Montana, has thrown down the gauntlet to builders throughout the nation. Anders Lewendal, a builder who holds a degree in economics, asserts that buying just 5% more American-made materials would create 220,000 jobs. When ABC News reporter David Muir spoke to a Boston consulting firm, that figure was validated. Watch this compelling story about Lewendal’s all-American house and the 33 states that played a part in making it happen.
Seattle beats Silicon Valley
Seattle wins the top spot for long-term, broad-based technology growth, reports Forbes. Based on a ranking system developed by the Praxis Strategy Group, Forbes considered employment growth in two sectors — high-tech companies (software, data processing, Internet publishing) and industries connected to science, technology, engineering, and mathematics (STEM). The numbers were tallied over the last two years as well as the past decade for the 51 largest metropolitan statistical areas in the U.S.
Surprisingly, the Emerald City beat out Silicon Valley and the other 49 areas with these high notes:
- 12% tech job growth over the past two years
- 7.6% STEM growth over the past two years
- 43% increase in tech employment over the decade
- 17% expansion in STEM jobs over the decade
The presence of tech-oriented companies like Microsoft, Amazon, and Boeing supports consistent growth in the Seattle, Tacoma, and Bellevue metro areas. GeekWire credits Amazon for playing a large role in the recent expansion. Over 9,400 employees have joined the Amazon labor force worldwide in the first quarter of 2012, and 1,000 open positions were recently announced for Seattle alone. Additionally, Bay area firms like Facebook and Google continue to establish sister campuses in the Seattle metro market.
How will Echo Boomers affect the housing market?
Generation Y, the Millennials, and Echo Boomers refer to individuals between the ages of 17 and 31, and they are 62 million strong in the U.S. alone, reports the National Association of Realtors in a recent news release. Echo Boomers represent significant buying power, according to the 2011 NAR Profile of Home Buyers and Sellers. Buyers aged 18 – 34 made up about one-third of all recent home purchases.
What makes this generation unique? The Millennials or Echo Boomers are predominantly children of the baby boomers. Authors William Strauss and Neil Howe, developers of generational theory, describe the Millennials as those individuals born between 1982 and 2001. Start and end dates can vary among sociologists, but what’s clear is that this generation is technologically well connected to their world, racially and ethnically diverse, and better educated than their parents.
As Baby Boomers age and transition to alternative housing options, Millennials will begin to impact the market over the next two decades, says NAR economist Selma Hepp. The demand for rental housing may be up among this group, but it won’t last, she observes. Millennials are currently challenged by the demands of work, student loans, and other debt. As the economy improves and household formation begins, this generation’s purchasing power will grow and influence the housing market.
A picture is worth a thousand words
Imagine driving by a house, snapping a photo of it with your iPhone, and then obtaining relevant data about the home and surrounding community. It’s possible with the HomeSnap app by Sawbuck. Walt Mossberg, personal technology columnist for the Wall Street Journal, reports on HomeSnap’s utility.
The housing market gets a boost in April
Housing starts in April were strong, increasing by 4.7 percent to a 685,000 annual rate, according to the median estimate of 80 economists surveyed by Bloomberg News. The Associated Press reports a slightly higher annual pace of 717,000 homes, based on Commerce Department figures.
Time reports these strides in the housing market:
- Construction went up for both single-family homes and apartments.
- Overall housing starts around the nation have hovered around 700,000 over the last six months, which is 100,000 more than levels for the previous six months.
- Even though the rate of construction is at 50% of the 1.5 million annual pace economists believe to be ideal, the recent gains coupled with job growth and builder confidence indicate that the nation is on the right track.
- Single-family home construction increased 39% from its low point during the recession.
Economists watch the number of starts because new homes, which comprise about one-fifth of the total housing market, create an average of three jobs over a year and approximately $90,000 in taxes. Based on 717,000 units, the housing market would support over 2.15 million jobs.
