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Site SearchRaleigh, N.C. — Two years ago, Trey Gaylord said, his family's home-construction company built more than 25 homes. Now, the Gaylords have no homes under construction and hold seven unsold houses.
Gaylord, of Richard Gaylord Home, Inc., said the economy has affected how the company has priced the unsold homes, too.
“We know the market is down, and we have tried to be real careful about pricing things correctly,” Gaylord said.
One home, with a marble entryway, spacious kitchen and office, could have sold for up to $875,000 in a good market, Gaylord said. Now, the home is priced at $750,000
“What is common across all income spectrums is fear,” North Carolina State University economist Mike Walden said Thursday.
Walden said consumers have lost roughly 11 percent of their wealth so far in the current economic downturn.
“Who has the most wealth to lose? That tends to be high-income people,” Walden said.
Homebuilders say they believe people are interested in buying new homes, but they don't because they are worried about the economy.
Some homebuilders say government incentives could make a difference. They say tax credits and low mortgage rates could get Americans spending again on real estate.
Walden said he believes incentives could be a move President-elect Barack Obama is ready to make.
“I think you could make a strong argument the housing market has to recover first before the broader economy recovers,’ Walden said.
Walden said a turn in consumer confidence and spending is the quickest way to turn the economy around.
Consumer spending accounts for about two-thirds of the U.S. economy.
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Dep of Labor statistics show that each new single family home built creates almost 4 new jobs for the economy. This builder directly employed fifteen or twenty people and indirectly helped pay the salaries of hundreds (subs, suppliers, insurance, banks, mortgage lenders, etc.).
For the record, sales in all price points have drastically declined in the past year. Gaylord shouldn't be singled out because he builds in this price point. Plenty of entry-level builders are on the rocks now, too.
Hating people because they're successful is a particularly petty way to think and is, in fact, un-American.
I hope this builder makes it through the recession and goes on to make millions of dollars. I hope he builds himself an even bigger mansion--because if he does, he will have contributed infinitely more to the economy than those who sit around whining about how much more their neighbor has than they do.
January 12, 2009 1:59 p.m.
I think the Homebuilders Association/Lobby actually does their members more harm then good, as they fight safety regulation, and any efforts for the building industry to share in infrastructure costs. And those stances then influence the public against builders...as we can see in many of these posts.
January 9, 2009 5:58 p.m.
January 9, 2009 5:30 p.m.
January 9, 2009 4:14 p.m.
I also believe that this local builder is a benefit to our community. Let's not beat up a small business because most of us can't afford the product.
That said - there is absolutely no way I would support any subsidies for homebuilders or even incentives to homeowners unless they are in financial need.
January 9, 2009 3:59 p.m.