(Orlando, FL – September 9, 2013) While housing activity is heating up everywhere, Orlando’s new home activity continues to increase at one of the strongest rates in the U.S. This is according to a recent report by Metrostudy, a national housing data and consulting firm that maintains the most extensive primary database on residential construction in the US housing market.
In the Orlando MSA (Lake, Orange, Osceola, and Seminole counties), 2,378 single-family housing units were started in the second quarter of 2013. This represents an increase of 59.5% compared to last year’s quarterly starts rate of 1,491 units. The annual starts rate of 7,796 units has increased by 50.2% over the past year. Single-family quarterly closings totaled 1,918 units which is 32.0% higher than the 1,453 closings that occurred in the same quarter last year. The annual closings rate (past 4 quarters) of 6,621 units is 37.4% above the rate of 4,819 units per year recorded a year ago. “We anticipate starts and closing rates to continue to grow in the coming quarters, as most builders still have a significant backlog of sales contracts,” said Anthony Crocco, Regional Director of the Metrostudy’s Orlando and Jacksonville Markets.
Total single-family inventory, which is comprised of units under construction, finished vacant units and models, equaled 4,477 units at the end of the second quarter, 8.1 months of supply. Housing inventory increased by 35.6% compared to last year, Under construction housing inventory rose by 1,183 units to 2,838 units over the past year. Finished vacant inventory decreased from 1,317 units last year to 1,307 this year. Model home inventory is up 2 units from last year to 332 total models. Builders in this market are closing 19.9 homes per year per model, significantly better than the 14.6 homes closed per model last year. “The number of units in housing inventory has increased recently, but primarily in under construction units. Completed houses are being occupied as soon as the house is finished. Much of the under construction is likely sold and we do not expect the finished supply to increase significantly over the next few quarters as closings should remain strong,” said Crocco.
This quarter, 638 lots were delivered to the Orlando MSA versus 234 lots a year ago. Vacant developed lot inventory stands at 28,204 lots, a decrease of 12.3% compared to 32,161 lots last year. Based upon the annual starts rate, this lot inventory represents 43.4 months of supply, a decrease of 30.9 months from last year. Vacant lot inventories are declining and the increase in annual starts caused the months of supply ratio to drop significantly this quarter. “There is less than 4 years of lots remaining in the MSA, which is a significant improvement from over 9 years of lots just 7 quarters ago,” said Crocco.
In the Orlando MSA, the number of employed increased by 1.6%, or 16,800 workers over the 12 months through May 2013, to 1,058,100. The Leisure and Hospitality sector led job formations with 8,500 jobs added in the past 12 months, a growth rate of 4.0%. Education and Health (4,000 or 3.1%), and Trade, Transportation, & Utilities (4,200 or 2.1%) saw significant gains over the past year. The construction sector lost 1,100 jobs over the past year, or 2.5%, from May of 2012 and 2013. No other sectors added or lost 1,000 or more jobs over the past year,” said Anthony Crocco, Regional Director of the Metrostudy’s Orlando and Jacksonville Markets.
“Our forecast is for strong activity through year end, at least, with builders working to hang on to margins in an environment of cost increases. At the same time, builders are looking hard at lot and land positions to secure the future lots needed to grow their respective businesses,” said Crocco.
For information contact:
anthony crocco @ 407.875.9090 x820
Metrostudy, a Hanley Wood company, is the leading provider of primary and secondary market information to the housing and related industries nationwide. Established in 1975 in Houston, Metrostudy provides research, data, analytics and consulting services that help builders, developers, lenders, suppliers, retailers, utilities and others make investment and business decisions every day. www.metrostudy.com
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