The housing industry witnessed a boom unlike any other in the 90s and 2000s right up until this equally dramatic burst in 2008. This time period was unique in that not only had a tremendous number of houses been built but a home improvement frenzy swept through the existing homeowners across the nation builders in woking. The now notorious lending practices ever expanded the percentage of Americans who could now buy a home. All of these events made it the golden age of the contractor.
Construction of new homes exploded everywhere and workers were in demand and in shortage. So much so that a generation of Mexican immigrants came over not to pick our crops but to build our homes. Builders were putting up houses as fast as they could trying to keep up with sales and everyone in the construction trades rode this wonderful wave.
Mortgages interest remained tax deductible while other interest deductions were phased out. Interest rates kept getting lower encouraging people to refinance every couple years as rates kept going down. Second Mortgages and variations including lines of credit kept getting easier to get as home equity soared with the every increasing value of houses. Investments in improvements paid for themselves in market value. General contractors started specializing into more narrowly defined niches as overall demand went through the roof if you will excuse the pun.
Then the bottom fell out. No money for lending, house values falling and all while foreclosures skyrocketed. Contractors suddenly went from having customers lining up to no having no customers at all. Even when things turn around, Interest rates will likely rise and people will likely view improvements more as an expense than as an investment as they once did. Banks other lending institutions own tons of homes that they are selling at deep discounts further lowing the market values.
Despite all this, these are not the end times and housing will bounce back even as the economy does. Something else happened just before all this. Oil prices soared and it woke people up. Then an election happened and a Democratic President and Majority in Congress as well. The confluence of these events has put us on a path that will dramatically change the future of housing and of being a Contractor in America