Home Construction, Housing Market on the Rise - ABC5 News Des Moines, IA

Home Construction, Housing Market on the Rise

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By Addie Olson

aolson@myabc5.com

@addieolson

After a five year slump, Iowa's housing market is making a comeback. The uptick is rooted in people building their own homes.

"I can definitely tell there's an upswing in the economy," said April Breig, the vice president of New Home Site Realty.

That upswing has led to more than a 50 percent increase in building permits over the last year.

"Lot sales have picked up tremendously, probably in the last six months," said Breig.

The slow, but continued growth of the economy has given businesses the confidence to invest, and buyers are following suit.

"Consumers are starting to feel a lot more confident about saying, 'Well I postponed moving to the bigger house even though the family grew, now I feel comfortable doing it,'" said economist Thomas Root.

Iowa is better off than other parts of the country.

"The Des Moines market is a little bit stronger than the rest of the nation, and the market has been more stable than the rest of the nation has," Root said.

That strong market will create jobs and lead to a promising future for Iowa's economy.

"All of this points toward positive economic growth long term," said Root. "It points toward especially the second half of the year doing well. As you see the permits, for example, getting filed, that means we should have higher construction throughout the spring."

In addition to more people building, the price of homes has risen more than seven percent from last year.

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